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Rent paid by partner

covers half capital repayment mortgage

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Partner moves into owned house of taxpayer, agrees to pay half the cost of mortgage (which includes capital repayments).

Home is also rented to company under license agreement so I believe 'Rent a Room' relief is not available.

I am assuming for now that all other bills are split evenly in addition to this.

Although the taxpayer is not making a cash profit, it appears that they are making taxable rental income once the capital element of the mortgage is stripped out.

Is this taxable rental income or are there any other exemptions I am overlooking to do with them being a household? 

Also another related query which is more of a legal one, if they later separated, would partner have a claim on part of the equity in the house as they have contributed to the mortgage payments?

Thanks in advance!

 

 

 

 

Replies (6)

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RLI
By lionofludesch
31st Oct 2019 12:13

Is this an 1890 Partnership Act partner ?

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By Carl London
31st Oct 2019 14:03

Girlfriend/boyfriend / common law partner

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RLI
By lionofludesch
31st Oct 2019 14:14

Then surely it's merely a domestic arrangement.

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By Tax Dragon
31st Oct 2019 14:22

It's a live-in lodger, not a spouse.

And I wouldn't let my boyfriend pay the capital on my mortgage (though I might charge him rent).

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By The Dullard
31st Oct 2019 14:36

Tax Dragon wrote:

It's a live-in lodger....

Don't you mean live-in lover? Lodgers live in as standard; that's why they're called lodgers.

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By Tax Dragon
31st Oct 2019 14:49

I probably meant "live with", but was paying homage to a previous Lion one-liner.

But yes, what you say sounds more good.

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