Can I have a lodger if there is another home owner who does not live with me?

AnotherConfusedBuyer

I am struggling to understand the rules surrounding lodgers if the property has joint ownership. I am looking at buying a house with my brother in Cambridge because neither of us can afford to buy alone and we want to get onto the ladder. He currently rents a flat in London and will continue to work there initially but I will live in the property full time. 

I would like to take in a lodger so as to be able to make larger morgage payments beyond paying off the interest, as there will be a spare room. As I understand If I owned the property alone I would be entitled to claim the tax rules associated with having lodgers (because I live there) and benefit from tax relief. If my brother owns half the house but does not live there how does this change that? Are they still lodgers? Can i consider them to be lodgers for tax? 

Do we have to take 50% of the 'profits' each or could this be considered my income as I will be the one doing the associated work? If they are not lodgers what do they become? is it possible for them to be my lodgers and different for him or not? 

If my brother moves in a becomes a weekday renter in London and lives with me at the weekends how does that change the situation? I’m realising it’s not the normal situation for two people not in a relationship to buy together but it must also come up with separated couples where one retains the property so I'm hoping someone has some answers.

Thank you in advance!

Thrugelmir

When buying a property with siblings and friends one needs to look long term. When one party wishes to move on with their lives. What's the exit plan? Events can rapidly change lives. 

steve866

Wouldn’t the income from the lodger go to your brother as he’s giving up his space in the house for a lodger

[Deleted User]

You would be the lodger's landlord and the income would be tax free under the rent a room scheme.

Your brother would not be the lodger's landlord.   There would be no agreement between them.  To all intents and purposes from the lodger's perspective your brother would not exist. It would be your income alone.

Your brother might reasonably ask you to pay him rent for the 50% you don't own.  But that would be a separate agreement between the two of you.

sheramber

I would suggest you ask on the cutting tax forum where there are tax experienced people to guide you.

Here is one link about a similar arrangement
https://community.hmrc.gov.uk/forums/customerforums/ifp/c0f28817-65ca-e911-b3b9-00155d9c6b78

AnotherConfusedBuyer

Thank you for all your input. Both the advice and the really useful link!