Tennant / Lodger

[B16JUS]

Just a quick question, the brother in law and his mrs are thinking of letting a room out for 6 months to a year, question is if you were letting someone lodge / rent a room how how does the council tax work do you have to pay extra ?

also regarding tax etc i remember there being some sort of allowance before paying tax but not sure.

any help that i can pass on

cheers

[boomboompow]

Your council tax will remain at the same amount as before (It is connected to your property, not the number of occupants) but at least there'll be one more person to split the cost with.

Can't help with your other questions I'm afraid.

[JQ]

Yes there is tax relief. I think it's around £4,000pa, but it's a long time since I did it. Google "rent a room scheme".

[B16JUS]

thats great cheers,

ive just found on the internet there is a £4250 a year allowance for rent a room scheme which is tax free ?

They have someone lined up who is a friend of a friend so i suspect this is better than a stranger

[AndrewTait]

The only time the Council Tax would be affected, is if the house was occupied by a single person prior to the lodger moving in. In this case, the 25% discount would not be applicable, and you would have to find the 25% out of the rent.

In your relations case, as there were already 2 of them living in the house, the amount of Council Tax will not change.

[B16JUS]

cool so the only real increase would be water, elec etc

cheers guys