My client owns his own flat and his girlfriend has just moved in with him. She wants to contribute to household costs (mortgage, gas etc) but is worried that if she pays more than £4250 he will be taxed on the excess.
I don't think this is "rent" at all so won't be taxable - but the manuals are strangely silent on what must be a fairly common scenario.
Any thoughts on this gratefully received.
Simon Lees
Replies (3)
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I can't find the reference but..
I am sure that where people live together as a family unit, so parents and children, couples etc, contributions to the household running costs are not rental income.
Looking ahead
Interesting question.
Just one thought, if their relationship continues and he decides to transfer half the house, don't forget the pre-owned asset rules!
chastity
no doubt her majesty's inspector will require evidence of locks, chains and curfews involved in your residence.