Student rental income
I have a (new) client who bought a property jointly with another unrelated person for the purpose of housing their children (A&B) who were going to University.
The house was big enough for A&B plus three other students.
The three other students paid rent each month and the parents of A&B also paid rent on behalf of their two children.
Is the rental income paid by A&B's parents taxable?
It would seem strange if I bought a house for my child, paid rent into a rental bank account each month and had to be taxed on that money. However if I bought the house jointly with a friend then the money I lodged into the bank would be income for my friend.
So do I treat 50% of A&B's rental as taxable income?
- Payroll experience for beginning AAT student 177 5
- Halloween - do you celebrate it? 1,486 49
- What would you do in this situation? 288 7
- Capital allowances anti-avoidance 411 14
- Limited Company - Personal Bank Account 3,705 76
- Providing registered office address to clients 190 4
- Foster Care 108 1
- Share premium or Directors Loan 789 33
- TOMS - Travel Agents 41 1
- Insurance Claim & VAT 58 1
- Interest Free Loan - Salay Sacrifice? 270 5
- Rollover relief - when does gain crystallise in this situation? 135 2
- HMRC Money Laundering Visit 573 3
- Dividend Payments 502 12
- Employed clients and expenses 894 18
- More HMRC on gov.uk 672 12
- Interest on HMRC contract settlement 204 4
- Enquiry into tax return - how co-operative would you be? 450 8
- Goodwill gesture for providing work 490 12
- VAT reconciliation and VAT return on Sage 153 3
- Bonus Bonds 397
- Insolvency and whistle blowing 391
- Transfer of funds into recently set up company 302
- TPR imposes first penalty notice fines 264
- Husband proposes to buy the car as Director unable to acess finance 199
- Box 8 VAT Return - deposit payment 196
- Company Car Lease 172
- Finance Lease 162
- Form 42 154
- Demerger Reserve 136