Who gets the rent money??

bloomfield

I recently bought a house with my dad, as a way of getting me on the ladder and for him to have a pension in later years. I live in the house and am responsible for all upkeep, issues etc. My dad just pays half the mortgage each month.
I have rented out a room in my house and was wondering if i have to give half of the rent money to my Dad???

clutton_2

i think you need to talk to your dad about this... if i was your parent i would say "no" - as you are paying all the bills.. its great that you are asking the question tho....

BitterAndTwisted

It would be sensible to save the lodger's income and keep it separate to finance any repairs and maintenance which might need to be done in the future. Ask your father what he thinks.

clutton_2

great idea B&T

bloomfield

Many thanks to you both for your input. Just wanted to get my facts straight, and wondered if there was any legal obligation. I will put the money aside for maintenence issues.
It just seems a little lobsided for reponsibilties of the house, and monies gained!!

PasturesNew

If he owns half the house and pays half the mortgage, then technically he owns half the lodger's room/bed and so would be entitled to half the rent.

It's something you need to discuss with him.

orangeslimes

I think there may be tax implications - i.e. it might be half your dad's income for tax purposes (check with a proper accountant - it may depend on the situation)

BitterAndTwisted

On the Revenue's "Rent-A-Room" scheme you can charge a lodger £4250 per annum (I think) without having to declare it as income.

tbs624

Except that on this property, if father and offspring own it jointly, any rent paid will surely be considered as jointly received? The father is not resident so his share could not fall under the RaR scheme.

OP - if you and your father own this property jointly, then you should (a) let your father know what you are planning on doing and (b) (both of you) talk to someone at HMRC for clear guidance.

You should also check your mortgage Ts and Cs, plus those of your insurance policies.

N79

tbs624 wrote: »

Except that on this property, if father and offspring own it jointly, any rent paid will surely be considered as jointly received?

Depends on whether father and son jointly grant the licence or if the son grants the licence as a sub-licencee to the son. This, of course, will depend on the agreement between father and son, which need not be in writing.

That said, if the latter, then I would suggest that the OP gets all the arrangements formalised in writing in case HMRC come knocking and try to force a tax liability on the father.