Renting own house out

I've got a client that is letting their house out for a couple of months while they have a long holiday. They've apparently spent a fair bit making it suitable for renting - albeit in the 2010/11 tax year while the rental hasn't happened yet. To be honest I think (knowing the client) they've probably done some decorating or whatever in the normal course of life and have then thought they can save some tax by claiming its for rental purposes! But I'd rather not tell them they're crooks and would prefer some facts :)

And am I right in thinking that the lower-rate taxpayer can only claim all the rental if they own the whole house, otherwise it gets split 50/50?

Any help much appreciated, I detest clients who try to avoid tax through downright lies and this one is big on trying it on.....

Comments
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True

petersaxton |
petersaxton's picture

Rent a room

JCresswellTax |
JCresswellTax's picture

Rent a Room

TaxationPete |

Sorry, don't agree Pete

JCresswellTax |
JCresswellTax's picture

Not PPR

petersaxton |
petersaxton's picture

Holiday?

JCresswellTax |
JCresswellTax's picture

I take your point about holidays

petersaxton |
petersaxton's picture

Spirit not important

JCresswellTax |
JCresswellTax's picture

I know

petersaxton |
petersaxton's picture

Rent a room

Flash Gordon |
Flash Gordon's picture

Why not phone HMRC?

petersaxton |
petersaxton's picture

Deemed

TaxationPete |

Phone HMRC

Flash Gordon |
Flash Gordon's picture

Just one of the articles I have found

JCresswellTax |
JCresswellTax's picture

OK

petersaxton |
petersaxton's picture

Agreed

JCresswellTax |
JCresswellTax's picture