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  • RE: Payments Received From Family Members

    Are you sure this would fall under the Rent a Room Scheme? The scheme says that I must let furnished accommodation within my residence to a 'Lodger' to qualify, and goes on to say that a 'Lodger' is classified based on whether 'you or a member of your family share a kitchen, bathroom or living room with them'. Would it therefore not be seen as the case that family members are not classified as 'Lodgers'? As in fact they are already a member of my family and implicitly applied as excluded. If family members are not lodgers, and make a contribution to the bills, would this therefore not be seen as a 'profit generating' measure and instead an informal familial arrangement where siblings share one household and contribute to the costs? I would ask another question, take for example parents that allow their children to stay living in their family home and pay a contribution...if that contribution took them above the rent a room allowance (let's say the parents have 3 kids all paying £300pcm for a total of £900 pcm), would you expect the parents to pay tax on those contributions? The issue of HMO is also prudent, because if family members are considered lodgers and contributions they make taxable, then is Capital Gains tax not payable when that home is sold?
  • Payments Received From Family Members

    Hi, I'm wondering if there would be any tax payable on payments received from Family Members living within my household? My siblings live with me and pay a contribution to help with the running of the house which i own that we all live in. I would have thought that as we are one household and all related this would not be seen as income and therefore not declarable? We all have separate rooms, and so if they were to be seen as 'Lodgers' then this would in the eyes of the law create a HMO type of arrangement, which i don't believe is the case according to my interpretation of the guidance.