Inheritance tax and renting

kidmugsy

Bonesbrigaded wrote: »

I have an elderly but healthy relative who is keen to work with me to avoid paying iht unfairly on their main home while continuing to live in it.

That's "unfairly" in its usual sense of 'perfectly fairly under the law' I assume?

sidefx

OP you say they want to stay in their home, yet live in the attic?

They won't benefit from the rest of the house if it is rented out!

If you care so much for your elderly relative then find them a home that will suit their needs at the same time as releasing funds from the sale that they can live on/enjoy.

Savvy_Sue

getmore4less wrote: »

What floor is the attic on?

There may be building regs/fire issues with this being rented as a self contained unit.

As an example, a colleague who did a loft conversion to add a bedroom had to get the stairs fully enclosed in a fireproof manner, with a fireproof door fitted.

Our house has a non-compliant loft conversion, done before we moved in. When we come to sell, the loft will NOT be marketed as a bedroom, even though it's possible we may have used it in that way.