Hmrc letter about non declared rental income

donglefan

beware there might be capital gains tax implications also if you are renting part of your home, when you have more than one lodger at a time. 
"Capital Gains Tax

You may have to pay Capital Gains Tax when you sell your home if:

• you let out all or part of it
• you’ve taken in more than 1 tenant or lodger at a time

However, you may be entitled to Private Residence Relief and Letting Relief."
https://www.gov.uk/rent-room-in-your-home/rent-bills-and-tax

best of luck with it.  you were obviously trying to do a good thing in a practical way and for some unknown reason got all this hassle.

Johnjdc

donglefan said:

beware there might be capital gains tax implications also if you are renting part of your home, when you have more than one lodger at a time.

Probably not applicable if they are family members, assuming they are behaving in a family type way (sharing the communal living space, eating together regularly, etc).

https://www.gov.uk/government/publications/statement-of-practice-14-1980/statement-of-practice-14-1980