NEWTH TALKS TAX - JULY: Tax writer of the year John Newth solves your tax questions | AccountingWEB

NEWTH TALKS TAX - JULY: Tax writer of the year John Newth solves your tax questions

**For more of John Newth's exclusive contributions, visit the Newthwire archive***

Buy to let properties
Martin enquired, on 25 July 2006 (157594), whether tax relief on mortgage intere


» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.

Dougscott's picture

Rent-a-room moral dilemna?

Dougscott | | Permalink

Here's a question. You rent a room in your house to your 10 year old daughter for £4250 a year who then sub-lets the room to Z Company for £5000 per year. Z Company just happens to be 100% owned by yourself. Your daughter has no other income. No tax. What's your view?

Actual personal residence

Sherlock | | Permalink

I fear that sub-letting to the company disqualifies rent-a-room-relief, as the relief is for personal residential purposes, i.e. personal living, sleeping and eating.

If I am wrong, then I am sure that HMRC would find some way of attacking the scheme under 'unacceptable tax avoidance'.

Paula Sparrow's picture

Class 2 contributions?

Paula Sparrow | | Permalink

Does Sarah really mean Class 2? Her query does not mention the client being self employed, so she would not be entitled to pay Class 2.

Class 3 contributions may be appropriate, but it would be necessary to look at a pension forecast first to ascertain whether they were worthwhile.