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HM Accountax Ltd
HM Accountax Ltd, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 341
Experience:  I am an accountancy professional with more than10 years hand on experience in audit, accountancy and tax affairs.
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My wife and I own a property in UK. We previously lived

Customer Question

Hi,
My wife and I own a property in UK.
We previously lived there together, but my wife moved out (for extended period) and is no longer uk-resident.
Since the property is easy to split, she rented out her part (& keeps the income).
I am still resident & living in my half of the property.Am I liable for any tax for this?
We are joint-owners of the property. HMRC tax papers have a questions if this property is jointly owned and jointly let.
I would like to say that this is not jointly let, as I am still resident in my "share" of the property, and if I don't get the income from the other, rented part - I should not declare this in my own tax returns.
Could you advice about this?
Submitted: 15 days ago.
Category: Tax
Expert:  HM Accountax Ltd replied 15 days ago.

Hi,

I am an advisor at JA and happy to assist you.

Could you please confirm which part (how many rooms etc) are let?

Regards

HMAT

Customer: replied 15 days ago.
it's a 2-bed property, we're renting one-bed
Customer: replied 15 days ago.
it's a 2-bed property, we're renting one bedroom out of 2
Expert:  HM Accountax Ltd replied 14 days ago.

Hi,

As per HMRC guidelines, it will be considered as jointly owned and income will be split equally between you and your wife unless you submit form 17 to HMRC. However, i want you to consider rent a room relief.

Rent a room relief is an optional scheme that lets you receive up to £7,500 in rent each year from a lodger, tax-free. However, this only applies if you rent out furnished accommodation in your own home. If it is a shared property you can only claim £3,750 each.

I hope this answers the query.

Regards

HMAT