Rent a room relief

Does it apply

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We have a pub we do the accounts for. The building is owned by the mother and son.

The mother spends most of her time in Spain. Her UK residence address  is the pub.

 

They receive rental income. The son wants to claim rent a room relief. I don't think so. One clause I note is that you can't live outside the UK and claim the relief, but i'm sure he'll say, they don't know that, and surely the upstairs of a pub isn't your own home for this purpose?

Replies (10)

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By bajones
18th Jul 2017 16:58

Where does it say you can't live outside the UK and claim the relief?

It says "for some or all of that period the residence is the individual's only or main residence".

Is the mother ever there at the same time as the tenant?

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By 0098087
18th Jul 2017 17:11

https://www.gov.uk/government/publications/rent-a-room-for-traders-hs223...

This is where it says you can't live aboard and claim it

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By bajones
19th Jul 2017 12:06

That's where HMRC says it, not where ITTOIA says it.

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By Portia Nina Levin
19th Jul 2017 12:13

Where do "they" "receive rental income" from?

It doesn't look like the pub is mum's main residence. So she can't claim rent-a-room on her half, even if it does otherwise qualify.

If it does otherwise qualify, the son's rent-a-room limit is halved. The living area part of the pub can certainly be his residence.

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By 0098087
19th Jul 2017 12:14

So who am I supposed to believe?

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By 0098087
19th Jul 2017 12:25

Income just comes from regular ppl renting and it is her main residence in uk.

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Replying to 0098087:
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By Portia Nina Levin
19th Jul 2017 12:42

MAIN residence is a concept that does not have international boundaries, and does not appear in an overlap on a Venn diagram.

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By bajones
19th Jul 2017 12:42

But if she is travelling Spain as a famous matador for most of the year, before returning to the Old Vic, then the pub would be her main residence.

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Replying to bajones:
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By Portia Nina Levin
19th Jul 2017 12:54

Actually, I'd suggest that she was mainly residing elsewhere in those circumstances, unless she stays in an hotel in Spain. There is no election; it is a question of fact.

An individual's main residence does not need to be owned by them.

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By 0098087
19th Jul 2017 13:00

I think the fact that they'd loose the expenses associated with it including council tax, light and heat, water rates makes it mute anyway

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