JamieMacdonald

Hello,

I have a 'spare' property which is currently unoccupied.

Say for example I let my sister live there f.o.c., but she would pay all the utility bills, council tax etc. and I would continue to pay the mortgage/service charge (it's a flat).

This is ok isn't it? I don't have to worry about paying extra tax or anything?

Would this differ if she gave me say £100 a week 'keep' money? Would I then have to pay tax on that?

Cheers,
Jamie

Jonathan Davies

Depends what you mean by "ok". If you're not getting income, you won't have an income tax liability, so it's ok in that sense. You would have to pay capital gains tax if you make a (big enough) gain when you sell it though. You could maybe get round that, or some of it, if you trusted your sister enough to give her the flat in exchange for the cash proceeds of sale later on. That might not be entirely legal depending how you do it (although it could be done in my view).

If you get rent, it's taxable but you ought to get a deduction for related expenses (including mortgage interest) ... probably wouldn't end up paying much tax tbh.

Peanuts

iTrader: (15)

Jay, have you moved in with that really really tall girl then?

JamieMacdonald

Hi mate,

Yes, I've moved in to her flat, which happens to have really really high ceilings!

Hence the empty flat. I've spoken to a few agents and there are 10% fees plus tax implications on rental income, so just looking at a few options.

Jay

ScoobywagonGl

Congrats Jay now you just need to buy a better car

Peanuts

iTrader: (15)

he has a porsche

shaunywrx

Like she said then, he just need's to buy a better car.

JamieMacdonald

Hi Tams.

Especially for you....

Meow..... What do you suggest I replace it with then 'shauny'?