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Rental income from family

I am just completing my very first tax return, which is a pretty simple affair and fairly straight forward.

But, I had a family member move back into my house and start paying me £450 a month for food, rent (although I have a mortgage), heating etc.

Should this amount be going on the tax return?

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By BKD
17th Jan 2013 08:24

Because the receipts exceed the Rent-a-Room relief amount

(£4,250 pa) then yes you may need to report it.

You should look  here for advice.

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17th Jan 2013 16:55

Huh?

BKD wrote:

(£4,250 pa) then yes you may need to report it.

You should look  here for advice.

 

That link links to the page we are already on (or it does for me!)!!!

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17th Jan 2013 09:48

Thanks for this, very helpful.

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Who's the family member?

When a "family member" "moves back in", that suggests to me that this family member is possibly a close relative?

Whilst BKD isn't necessarily incorrect (although the link provided doesn't work), if the nature of the amount being paid is more by way of a contribution towards the household costs (eg the food is the food that they use, rather than you providing them with meals), including the mortgage, then I wouldn't say you had either a business for the generation of income from land or a trade that would render the amounts being received taxable in the first place.

Be interested to know what material BKD was linking to though.

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17th Jan 2013 16:04

Hi George

Thanks for that response.  It is my daughter and her boyfriend, and they are simply moving back in because they struggled with costs where they were living.

The money is simply to cover the extra heating/water and food they will use (including a small contribution to the mortgage).

 

So it certainly isn't to generate income and so no need to enter on my tax return?

 

 

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17th Jan 2013 16:31

Have they got a rent book

Are they claiming this 'rent' anywhere?

Sounds more like a contribution to common expenses.

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17th Jan 2013 18:47

Thankyou for the responses.

No rent book, they left their old rented apartment and moved back in with me and only contributing to towards food, mortgage etc.

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