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Joint property - rent a room relief allocation

Joint property - rent a room relief allocation

A property that is owned as tenants in common by husband and wife is let out to two lodgers. Included in the rental income is the provision of food, cleaning etc.

The wife does all the work for the lodgers including administration. Is there any way that the rent could be apportioned to the wife only as she is currently a basic rate tax payer and husband an additional rate taxpayer? i.e. the rent in total be entered on her tax return and full rent a room relief claimed? 

 

 

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25th May 2018 10:07

She could perhaps put the food, cleaning etc. items in her tax return if it's just her who does that. The rent for H&W joint legal owners is 50/50 under s836 ITA 2007 (although it seems there is an exception for this relief. See - https://www.litrg.org.uk/tax-guides/other-tax-issues/property-income/ren...). For others you look at the common intention of the parties or in the absence of that the actual equitable ownership. See:
http://www.bailii.org/ew/cases/EWHC/QB/2018/1258.html

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