Charging mother rent...........

silvercar

Captain_Mainwaring wrote: »

I trust that you will properly account for any tax liability caused by the rental income.

Thats not the half of it, when you come to sell there will be a capital gains tax liability. This is based on the gain you have made while owning the property. Normally the starting point for calculating the gain would be the price paid for the property. If the parties are related, the starting point is market value. I would do some research on the market value of the property with a sitting tenant paying no rent (which is effectively what your mother is).

tbs624

Captain_Mainwaring wrote: »

.....I trust that you will properly account for any tax liability caused by the rental income.

Ahem, CM .........

Captain_Mainwaring wrote: »

.. Why? are you a tax inspector now? .

:rotfl:

Captain_Mainwaring_2

tbs624 wrote: »

Ahem, CM .........
:rotfl:

And your point is? two completely different contexts.

meester

Captain_Mainwaring wrote: »

Obviously getting a cheap house wasn't enough for you. How would your mother have paid the Council rent had you not purchased the property? If she would have been entitled to some support in this case, you should have considered that before buying the place. You could have waited and take over the tenancy in the event of her demise, and then purchased the place.

I trust that you will properly account for any tax liability caused by the rental income.

*Yawn*

No need for lectures, the raison d'etre of this site is for people to improve their personal situation by doing things exactly like this.

If it's not legal, explain, if it is and you don't like it, go whine to your MP

Captain_Mainwaring_2

meester wrote: »

*Yawn*

No need for lectures, the raison d'etre of this site is for people to improve their personal situation by doing things exactly like this.

If it's not legal, explain, if it is and you don't like it, go whine to your MP

Then post this crap on the DFW/Benefits section.

Legal? doubtful and as mentioned it is bound to get slung out, but more to the point it isn't morally right, why not kick the old girl down the stairs too and claim a bit of disability benefit??

Oh and the "raison d'etre" of this site in many cases seems to be "how to avoid paying back what I have borrowed", but that wonderful advice will come back round and bite many people back on the !!!!.

lowis

i could never charge my mother rent - especially if I didn't need to, and it seems you are managing just fine without the extra income from the benefits system in your bank account. my mother never charged me rent for 20 years, so i would just be happy to be able top pay back some of the favour.

Captain_Mainwaring_2

lowis wrote: »

i could never charge my mother rent - especially if I didn't need to, and it seems you are managing just fine without the extra income from the benefits system in your bank account. my mother never charged me rent for 20 years, so i would just be happy to be able top pay back some of the favour.

And I quote

No need for lectures, the raison d'etre of this site is for people to improve their personal situation by doing things exactly like this.

The OP wants it both ways, not content in getting a cheap house, they have suddenly realised that because in theory she owns the house now, she cannot get any benefits or rent paid.

tbs624

Gorgeous_George wrote: »

I'm not sure of the rules but you can rent from family. My niece rents from her parents.

You will get some severely nasty posts on this thread (call me psychic). Mostly from people who would have done what you have done but will say that they would not.

The 'holier than thou team'.*

GG

* (be brave GG - let's not hide it;))

GG I don't think it's about people being nasty or "holier than thou". The HB/LHA system iwas put in place originally to help those who genuinely have no other means of providing a roof over their head. Many people believe that if close family can support their elderly parents then there is some merit in arguing that they should do just that.

Unfortunately, the system *is* effectively "milked" right, left and centre, and I can see that for some people , the fact that another person can let his/her house out &, when the occupant is not a relative, get rent paid by the state (thereby contributing to their investment) it may make it seem unfair.

In this case though, "Mum" had a Council-owned property, and will have been an assured tenant. Son pays for Mum to buy it ( at her full discount entitlement) ,and charges her no rent after he has done so. The arrangement clearly benefits Mum but if Mum had remained a Council tenant and couldn't pay her rent she would have got some assistance with the rent and eventually that Council house would have passed back in to the social housing stock to provide a home for someone else. It does look on the face of it that the key beneficiary of what's being enquired about here would be the son, not mum?

I don't have the time to compare LHA rules but the HB regs on "contrived tenancies" are covered in The Housing Benefit (General) Regulations 1987, Reg 7 (b):-

"a person whose liability to make payments in respect of the dwelling appears to the appropriate authority to have been created to take advantage of the housing benefit scheme except someone who was, for any period within the eight weeks prior to the creation of the agreement giving rise to the liability to make such payments, otherwise liable to make payments of rent in respect of the same dwelling;"

So, the OP would have to show without doubt that his mother had been properly required to pay rent for a relevant period before any claim was made.Whether he can sufficiently justify not having asked for rent for say, several years, and then starting to do so is something he'd have to look very carefully at.

meester

Captain_Mainwaring wrote: »

Then post this crap on the DFW/Benefits section.

Legal? doubtful and as mentioned it is bound to get slung out, but more to the point it isn't morally right, why not kick the old girl down the stairs too and claim a bit of disability benefit??

Oh and the "raison d'etre" of this site in many cases seems to be "how to avoid paying back what I have borrowed",

I agree that it is, and I can't bring myself to read those threads because they wind me up too much, but be that as it may, it's been made clear, many times, that this site IS about milking the system (whatever system) for whatever you can.

Sorry if you don't like it (and I don't, except when it suits me ), but that's what this site is.

Captain_Mainwaring_2

I'll stick with my ill-advised principles as if nothing else I can always take the moral highground.