Letting my house, tax, capital gains etc...

Mojisola

Guest101 wrote: »

Srry to burst your bubble, but if you take money, they're lodgers, not guests

When I've stayed with relatives for more than a couple of days, I've always contributed towards the household costs. Did that mean I was their lodger every time I spent the holidays with them?

HappyMJ

Mojisola wrote: »

When I've stayed with relatives for more than a couple of days, I've always contributed towards the household costs. Did that mean I was their lodger every time I spent the holidays with them?

If you gifted the money without being asked for the money then you're a guest.

If they asked for a contribution then you're a lodger for those few days. In the grand scheme of things up to a few weeks a year isn't going to make any difference to income tax or capital gains.

delmonta

I understand those are the rules, so yes technically they are lodgers.

But it's not like they are giving me money! We are all paying evenly money to the gas, electricity and water companies. It doesnt go in my pocket...

Anyway, I do appreciate all the info, and theres no point in to us getting in to a long debate about what is right and wrong here. It always ends up bitter on the internet!

Innys1

HappyMJ wrote: »

If you gifted the money without being asked for the money then you're a guest.

If they asked for a contribution then you're a lodger for those few days. In the grand scheme of things up to a few weeks a year isn't going to make any difference to income tax or capital gains.

And, practically speaking, the HMRC could not reasonably determine which was actually the case - unless they contacted the former guest/lodger who would probably be long gone by the time the HMRC took any interest.

It seems odd to me that if someone stays in the OP's house and only contributes to their share of the bills, nothing in the way of rent, they are deemed a lodger and so, potentially, could have an impact on the OP's CGT position. If those are the rules, fine - it just seems a bit unfair.

delmonta

Thats why sometimes it's best not to play by the rules if you don't agree with them!

I really don't like it when people think that because rules/laws exist that they are just or even practical. You could create a huge list of laws in the UK which either ridiculous or unfair.

Bluebirdman_of_Alcathays

delmonta wrote: »

Thats why sometimes it's best not to play by the rules if you don't agree with them!

I really don't like it when people think that because rules/laws exist that they are just or even practical. You could create a huge list of laws in the UK which either ridiculous or unfair.

Even by MSE standards, this is one of the biggest piles of nonsense I've read. You may or may not agree with the rules. I disagree with plenty of them. But they do exist, and if you don't play by them, the consequences can be very severe indeed. That is what I, and others, have been trying to get across.


You are liable to income tax on the money received for bills. And you definitely are liable for CGT on the period you let out the two rooms. It is called self assessment, so you may well "get away" with it if you don't declare, but be under no illusions that it's a crime that is very punishable, should you be caught.

Guest101

It's irrelevant if you pocket the money or not.

They give you money, you choose to use it on bills.

Just like your employer gives you money and you choose to use it on bills.

It's not a difficult concept

Innys1

Guest101 wrote: »

It's irrelevant if you pocket the money or not.

They give you money, you choose to use it on bills.

Just like your employer gives you money and you choose to use it on bills.

It's not a difficult concept

No, not at all like that.

Your utility bills, which is what I believe the OP is talking about, do not go up because you happen to be working for an employer. In fact, quite the reverse is often the case.

The OP took in guests/lodgers and because their utility bills went up, their new housemates compensated them for the cost.

If the OP went to work for an employer, the wages they received would not be to compensate the OP for any increase in utility bills, it would be to compensate them for their work efforts.

Guest101

Innys1 wrote: »

No, not at all like that.

Your utility bills, which is what I believe the OP is talking about, do not go up because you happen to be working for an employer. In fact, quite the reverse is often the case.

The OP took in guests/lodgers and because their utility bills went up, their new housemates compensated them for the cost.

If the OP went to work for an employer, the wages they received would not be to compensate the OP for any increase in utility bills, it would be to compensate them for their work efforts.

It's irrelevant, it's an income.

Why do you think rent a room cheme includes any payments for bills?

HappyMJ

If your lodgers pay exactly one third of all the household bills you won't have any issues with the HMRC as far as income tax is concerned as the income equals the allowable expenses. There's no profit and therefore no tax is due.