Hi, I have some clients, a married couple, who have converted the basement of their home into a self-contained flat with a separate entrance. They are renting this out through Air B&B.
The rental property will meet the Furnished Holiday Let (FHL) requirements regarding number of days let/available. The flat does not have a separate Council tax bill
The only time I’ve come across similar situations is where clients rented out a completely separate property e.g. a cottage attached to their main property with its own council tax rating. Or when clients have rented out rooms in their house but with a shared entrance/facilities.
Therefore I have two questions:
1. Can my clients claim rent a room relief?
2. If not then the rental income will be treated as per any other FHL income in which case they can split the income how they like e.g. 100% could go to the wife?
Thanks, in advance