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Paying reduced rent for services to landlord

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A new client has been pay his landlord £500 per month rent for his flat the past few years under a 'Gentleman's Agreement' . There are 19 others in the block paying the same landlord £900 per month. In exchange for this reduction , the client does the general administration relating to the banking and general collection / servicing arrangements. Whilst HMRC cannot dictate what rent a landlord should impose , it's obvious that the fair market value of the exchange must be deemed as income. I concur the Revenue's Business Income Manual BIM 41075 here.

But who should declare - and declare what. The landlord for rent due or the new client tenant for providing a service for a benefit in kind ?  Or both ???

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By Paul Crowley
07th Apr 2021 15:11

Sounds like a simple barter arrangement
Landlord's position neutral unless lessee is really an employee.
Lessee is getting a benefit for working
He is not working for free

The problem is that you now know, in your professional capacity

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A Putey FACA
By Arthur Putey
07th Apr 2021 16:20

I shudder to think what might come under "servicing" here.

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Replying to Arthur Putey:
By thestudyman
08th Apr 2021 09:22

Let's hope its not a pepperporn rent.

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