letting property and income tax

Newdirections

I think I probably already know the answer to this but was just wondering if anyone else could confirm it for me.

I own one property outright. I am planning to live somewhere else as a property guardian and rent out my (only) property. Are the earnings I make from renting the property treated as taxable income?

Thanks

fishpond

All income is taxable!

anselld

Newdirections wrote: »

I think I probably already know the answer to this but was just wondering if anyone else could confirm it for me.

I own one property outright. I am planning to live somewhere else as a property guardian and rent out my (only) property. Are the earnings I make from renting the property treated as taxable income?

Thanks

Yes...........

AnotherJoe

What is a "property guardian"?

booksurr

AnotherJoe wrote: »

What is a "property guardian"?

people who own properties which they regard as being vulnerable in terms of either squatters or their being a target for burglars etc because they are vacant would rather them be occupied as a deterrent.

obviously they could pay a security guard to be there but that is expensive, so the concept of the "property guardian" was invented (USA I think) whereby in return for a zero or nominal rent payable by the guardian, the person agrees to occupy the premises, act as unpaid guardian of it, but in return does not get normal tenancy rights and can be "evicted" much more easily than a normal AST/commercial tenant

as with all forms of capitalism middleman now operate in the market to join renters to letters, here is an example plucked from the internet on an "ad hoc" basis which provides more info if you care to read http://www.adhocproperty.co.uk/property-guardians/

booksurr

Newdirections wrote: »

I think I probably already know the answer to this but was just wondering if anyone else could confirm it for me.

I own one property outright. I am planning to live somewhere else as a property guardian and rent out my (only) property. Are the earnings I make from renting the property treated as taxable income?

Thanks

of course it is, although to be precise you will be taxed on your profit not the gross rental income. If you think you can offset the guardian rent against the rent you receive you are wrong. How you spend your money (on paying to live somewhere) has no bearing on the fact you get taxable income

tried google yet?
https://www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-working-out-your-rental-income

theartfullodger

AnotherJoe wrote: »

What is a "property guardian"?

It is likely that, regardless of the terms of the tenancy/license agreement (see Street v Mountford) that the person acting as a "property guardian" may well actually have an AST. The property guardian companies assert this is not the case but I am unaware of any test case to resolve the matter.

Newdirections, regardless of this may I 'umbly suggest you need a plan of where you would go if you are evicted (one way or another) from your "guardian" property and are unable to move back into your investment property..

Just because a fixed term tenancy ends, or just because a landlord serves an s21 notice, the tenancy continues and the "your" tenant does not have to leave. Only the court has the power to forcibly evict an AST tenant.