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Parent living with child
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kiss_my_face
Posts: 19 Forumite

A parent does not own their own property. They live in their adult child's property with their adult child. They contribute £200 a month towards food/bills etc. What implications may their be for a) the adult child's tax and b) potential inheritance tax in the future?
The parent sold their own house 10+ years ago.
Should there be some kind of formal lodging agreement in place? Or is it OK to keep it informal (I.e. Nothing signed and no contract).
It seems that less than £7500 a year does not need to be declared if you have a lodger. But this is a slightly different arrangement from usual and I wonder if letting family live with you makes any difference to anything.
Any advice welcome!
The parent sold their own house 10+ years ago.
Should there be some kind of formal lodging agreement in place? Or is it OK to keep it informal (I.e. Nothing signed and no contract).
It seems that less than £7500 a year does not need to be declared if you have a lodger. But this is a slightly different arrangement from usual and I wonder if letting family live with you makes any difference to anything.
Any advice welcome!
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Comments
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any benefits?Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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They have formed a single household, sharing expenses. There are no tax implications.No reliance should be placed on the above! Absolutely none, do you hear?1
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Well, there's a council tax implication if it means the child no longer qualifies for the single person discount.
But otherwise I don't see any implications for other taxes. What are you thinking the inheritance tax effect may be?1 -
chanz4 said:any benefits?0
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user1977 said:Well, there's a council tax implication if it means the child no longer qualifies for the single person discount.
But otherwise I don't see any implications for other taxes. What are you thinking the inheritance tax effect may be?0 -
kiss_my_face said:A parent does not own their own property. They live in their adult child's property with their adult child. They contribute £200 a month towards food/bills etc. What implications may their be for a) the adult child's tax and b) potential inheritance tax in the future?
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kiss_my_face said:user1977 said:Well, there's a council tax implication if it means the child no longer qualifies for the single person discount.
But otherwise I don't see any implications for other taxes. What are you thinking the inheritance tax effect may be?
In any event, what's the concern? It's hardly a reason not to make the payments, as otherwise the parent will (presumably) still have the cash, and then it's definitely part of their estate for IHT purposes!0 -
kiss_my_face said:user1977 said:Well, there's a council tax implication if it means the child no longer qualifies for the single person discount.
But otherwise I don't see any implications for other taxes. What are you thinking the inheritance tax effect may be?No reliance should be placed on the above! Absolutely none, do you hear?0 -
GDB2222 said:kiss_my_face said:user1977 said:Well, there's a council tax implication if it means the child no longer qualifies for the single person discount.
But otherwise I don't see any implications for other taxes. What are you thinking the inheritance tax effect may be?
At moment this is all hypothetical, but really useful to get opinions to see what I've missed.0 -
Was there a mother who died previously and he was married to her when she died?
Was mother’s nil rate band used after her death?0
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