Just looking for advice - lodger/tenant?

Blue_Bird

Hi,

I'm just looking for some advice from anyone in the know about the following -

I'm thinking of buying a property, and my brother has said he would like to live there too. I'm not sure if it's relevant, but I won't be there all the time due to work (HM Forces). My current thinking is that my brother will pay utilities and maybe £200 rent a month, and I'll obviously pay my mortgage, the council tax, repairs, decorating etc.

I've looked at the rent a room/lodger guidelines etc but can't work out what the tax implications would be.
Is it the same as when kids pay their parents board money?
Does being related to a 'tenant' make a difference?
Would I need a buy to let mortgage?
Is there anything else I need to think about?

As I say, it's all an idea at the moment, just looking for some objective advice from anyone with experience of the situation.

Thanks for reading,

Blue

Talc1234

You are allowed £350 pcm tax free. But if he pays you cash whose to know anyway.

No need for a BTL mortgage

G_M

If this is your primary UK residence then you will be a resident landlord and brother will be a lodger.

LODGERS (Licencees/Excluded Occupiers)
A lodger (broadly) lives in the same property with their resident landlord, and shares facilities. Unlike tenants, lodgers have few rights.

The Housing Act 1988 provides definitions of 'Resident Landlord' and 'same property' (S31 & Schedule 1 (10).

There is advice for landlords considering taking in lodgers here:

LodgerLandlord (General information site)

Landlordzone (General advice on taking in lodgers)

Renting out rooms in your home (Government info)

Rent a Room Scheme (Government scheme for tax-free income from lodgers)

21 tips (Tessa Shepperson's Lodger Landlord website)

kinger101

The rent a room relief can still be claimed where the room is let to a family member, so that will not be a problem.

Kynthia

Would he be a lodger or a member of the household contributing to the running costs of the home?