Posted overseas with Forces - renting to brother

mybestattempt

https://forums.moneysavingexpert.com/discussion/comment/82034725#Comment_82034725

I don't understand why you think the fact the OP and his wife cannot claim Rent-a Room relief places any restriction on being allowed to let the property for payment of rent.

The position is quite staightforward:

•The brother will live in the house and pay rent to the OP and his wife

•That rent is the taxable income of the OP and his wife which does not qualify for Rent a Room relief (which is a tax exemption).

WIAWSNB

https://forums.moneysavingexpert.com/discussion/comment/82034763#Comment_82034763

There appears to be two basic options open to the OP; allow his bro to live there for a nominal rent under the RaR scheme, whilst keeping the status of the house, for most intents and purposes, as his own, to be used as such at t'drop of a hat, or to go the APT(?) route with all the associated conditions, almost least of which is tax.

Bigphil1474

OP, you may know this anyway, but just to add, there is an exemption for military personnel living in military accommodation whether abroad or in the UK. They can nominate a main residence for CGT relief which isn't their actual main residence, and even if that main residence is rented out to someone else. You need to send a letter of nomination to the HMRC.

Unless your rental income is less than £1000 per annum (that’s £1000 per person receiving the rental income), then you need to fill in a self-assessment to let HMRC know about it. The income must be in line with the ownership split in the deeds (or Statement of Trust if you have one drawn up). You could therefore rent the house to your brother for £1,999 a year (assuming you own the property 50/50) and not need to notify HMRC. He could also pay the council tax and you get a 25% discount.

https://www.raf-ff.org.uk/cgt-service-accommodation-and-renting-out-property/