Can you claim lettings relief if somebody lives in your house rent free, while you have another PPR?
I can't find anywhere in the legislation that says otherwise?????
Nick Parkinson
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Replies (4)
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Formal lease not required for letting
But the absence of a formal lease doesn't necessarily mean there can't be a letting, as far as tax is concerned anyway.
In Nick's query, its the absence of any intention to generate income from the property that's crucial.
No lease
The definition of a lease for the purpose of TCGA 1992 (s.223(4) of which grants letting relief) is set out in Sch.8 para.10 as:
"lease" in relation to land, includes an underlease, sublease or any tenancy or licence, and any agreement for a lease, underlease,...
I agree with Peter that in the absence of any formal agreement, there is no lease and hence, no lettings relief. Of course, if the owner had never lived in the house, it would not be his residence and he would not be entitled to any PPR or lettings relief on it.
Good One
My first response would be that you are not letting the property, you have no AST or other agreement in place so you just have a friend staying in your second home although it may have been your PPR. So no Letting Relief, there is no declared income or reported loss. So No. Regards Peter
Nice question
Can't see anything in the HMRC Manuals either.
Lettings relief can be claimed where a property has been let as residential accommodation. And therefore subject to Income Tax as a 'property business'.
If no income is received & is not intended to be received, then it doesn't seem there can be a 'property business'. And hence no claim possible for lettings relief.
That's what I'd argue if I were HMRC.