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Does house swapping incur income tax
Matt_Lincoln
Posts: 1 Newbie
Our friends have offered to live in our house for a year while we live in theirs, as we need to be in each other's areas.
Obviously, if we rented our houses to one another, we would have to pay tax on the income, after deducting mortgage interest and other allowable costs.
However, if we simply swap informally and no money changes hands, is there any tax liability?
Obviously, if we rented our houses to one another, we would have to pay tax on the income, after deducting mortgage interest and other allowable costs.
However, if we simply swap informally and no money changes hands, is there any tax liability?
0
Comments
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You will be tenants.
Payment does not have to be in cash - it can bein kind. In this case you will be receiving free accomodation in return for letting them stayin your house.
* Your insurance will be invalid (unless the insurer knows/agrees)
* mortgage lender consent
* gas safety etc
* tax
* if you wanted to return before your friend wanted to, you would have to go to court to evict
New Landlords (general information for new or prospective landlords)0 -
Suggest you set up ASTs with a "peppercorn" rent - say £1 a month. That way it cannot be argued that it is anything other than renting to each other.0
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