We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
financial implications of paying rent/sharing living costs with elderly parent
Options

lucypilates
Posts: 137 Forumite

Hope this is the right section to post this ...
I've just bought a house with a 1 bed annexe (attached) with the plan to live together with my mum who is late 70s. She's 100% independent at the moment though there are signs that she might need more support for daily living within a few years. Already she needs me to help with her shopping and help her make decisions and she doesn't like to use the phone etc.
She has a great pension and has almost double my income at the moment.
When we're living together, she's desperate for me to not work full-time and to be honest, I think I would need to be around a bit more to help her and be there for her too. I actually don't relish the idea of becoming too much a carer though so it will probably be a mixture of me and bought in help as needs change in the future.
My mum hasn't contributed to the buying of the house at all and is not named in the deeds. This house is definitely going to cost more to run that my old house. She will sell her own house and sit on the money.
So I was thinking that I would charge her a small rent and we'd go halves with the utility bills and council tax. She likes to be in charge of her own food (doesn't like my cooking!! lol) so she will pay for her own shopping as she does now.
What should I take into consideration in terms of financial implications? Should I be declaring the rent/share of bills to anyone?
Many thanks
I've just bought a house with a 1 bed annexe (attached) with the plan to live together with my mum who is late 70s. She's 100% independent at the moment though there are signs that she might need more support for daily living within a few years. Already she needs me to help with her shopping and help her make decisions and she doesn't like to use the phone etc.
She has a great pension and has almost double my income at the moment.
When we're living together, she's desperate for me to not work full-time and to be honest, I think I would need to be around a bit more to help her and be there for her too. I actually don't relish the idea of becoming too much a carer though so it will probably be a mixture of me and bought in help as needs change in the future.
My mum hasn't contributed to the buying of the house at all and is not named in the deeds. This house is definitely going to cost more to run that my old house. She will sell her own house and sit on the money.
So I was thinking that I would charge her a small rent and we'd go halves with the utility bills and council tax. She likes to be in charge of her own food (doesn't like my cooking!! lol) so she will pay for her own shopping as she does now.
What should I take into consideration in terms of financial implications? Should I be declaring the rent/share of bills to anyone?
Many thanks
0
Comments
-
Isn't it the same as having an adult child still living at home - they pay 'keep' towards all the bills. It's not counted as income for the parents.
0 -
Mojisola said:Isn't it the same as having an adult child still living at home - they pay 'keep' towards all the bills. It's not counted as income for the parents.0
-
Another way of looking at it is like people who rent out a room/annexe to help them out financially. There are sometimes tax implications in those cases above a certain figure. Not sure if it applies to family though where you're plan is to help her in the longer term. I'm a bit vague about this but I'm sure someone more knowledgeable will be along soon.0
-
Pretty sure you can rent rooms tax free upto a certain amount.
And I cant see how making a contribution towards the utilities could be taxable, as it's not income0 -
You say she has a very good pension, does her income outstrip her expenditure? If so you could look at her making gifts of her excess income, which would also be good tax planning on her part. So for example her net monthly pension and other income = £2500, her monthly expenditure ( including her share of CT and utility bills) is £1500, she could then gift you £1000 a month from her excess income.
0 -
Is the annexe self contained, or just a bedroom/en-suite?Also not what you’re asking but has she made power of attorney for both finances and health/ welfare?All shall be well, and all shall be well, and all manner of things shall be well.
Pedant alert - it's could have, not could of.1 -
Keep_pedalling said:You say she has a very good pension, does her income outstrip her expenditure? If so you could look at her making gifts of her excess income, which would also be good tax planning on her part. So for example her net monthly pension and other income = £2500, her monthly expenditure ( including her share of CT and utility bills) is £1500, she could then gift you £1000 a month from her excess income.
0 -
ZeroSum said:Pretty sure you can rent rooms tax free upto a certain amount.
And I cant see how making a contribution towards the utilities could be taxable, as it's not income0 -
Mojisola said:Isn't it the same as having an adult child still living at home - they pay 'keep' towards all the bills. It's not counted as income for the parents.0
-
lucypilates said:Mojisola said:Isn't it the same as having an adult child still living at home - they pay 'keep' towards all the bills. It's not counted as income for the parents.0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 350.9K Banking & Borrowing
- 253.1K Reduce Debt & Boost Income
- 453.5K Spending & Discounts
- 243.9K Work, Benefits & Business
- 598.8K Mortgages, Homes & Bills
- 176.9K Life & Family
- 257.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards