A client rents two rooms in his three bedroom home. Rental income is circa £20K and the client pays circa £15K in mortgage interest. Can he claim relief for 2/3rds of the interest and lighting and heating, or is he limited to £7.5 Rent a room relief? If he can claim the actual proportion does that disqualify him from PPR Relief on that portion of gain on sale of the property? I'm leaning towards a loss of PPR Relief if he claims the actual proportion, but I've not come across this problem before.
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Please.
Kindly,Cite the source(s) of your leanings.
HMRC property income manual?
Thank you
Why do you think the rules for Income Tax affect the computations for Capital Gains Tax?
A client rents two rooms in his three bedroom home ... Can he claim relief for 2/3rds of the interest and lighting and heating
Are there no reception rooms?