Rental income from sister

Sister paying rent is it taxable?

Didn't find your answer?

Client receives rental income from his sister each month for living in his previous house. This is an informal arrangement and the rent paid is much less that the market value rent. However, there is no mortgage on the property so there is actually a profit being made after bills are paid e.g. council tax. The client is adamant that this should not be declared as it is a family arrangement only. I am not sure HMRC would agree as 40% tax on the profit would be in excess of £1,000. Client is arguing saying no formal agreement, it is just money from Sister and no profit intended. Readers thoughts would be very much appreciated.

 

Replies (5)

Please login or register to join the discussion.

By stratty
21st Apr 2017 11:44
Thanks (1)
Replying to stratty:
avatar
By WhichTyler
21st Apr 2017 12:14

Also see lots of coverage of the Candy brothers trial (" I didn't give him millions of pounds because he was running the business, but just cos he's my bruv...")

Thanks (1)
avatar
By SE
21st Apr 2017 12:12

Many thanks

Thanks (0)
By Duggimon
21st Apr 2017 15:03

If it's so informal then presumably he'd have no issue if the sister stopped paying him?

Oh wait, turns out it was rent after all.

Thanks (0)
boxfile
By spilly
22nd Apr 2017 01:15

Surely this comes under rent-a-room allowance?

Thanks (0)