Rental income on a rented property

by **russ23** on Sat Feb 04, 2012 12:09 pm

Mr A rents a property and pays £20,000pa directly to the owner.

Mr A has a flatmate who pays Mr A £10,000 to live at the property (paying Mr A rather than the owner).

I appreciate that the net income for Mr A is £nil (£10k less £10k) and assume as he does not own the property he doesn't have to declare it on his tax return...?

Any comments welcomed.

by **nikkisizer** on Sun Feb 05, 2012 12:33 pm

Hello russ23,

Mr A's net income is not nil it is £10k as he is receiving a rental income from his flatemate so this would need to be declared on Mr A's tax return.

Please do not hesitate to contact me should you require any further assistance.

by **King_Maker** on Mon Feb 06, 2012 10:59 am

Mr A may want to declare it, if he is making a Loss.

Does he have permission to sublet?

by **section 44** on Mon Feb 06, 2012 11:06 am

nikkisizer wrote:Mr A's net income is not nil it is £10k

Why would Mr A not be entitled to any deductions against the £10k income in arriving at his net income?

by **nikkisizer** on Mon Feb 06, 2012 11:19 am

section 44 wrote:Why would Mr A not be entitled to any deductions against the £10k income in arriving at his net income?

Mr A normally would be but depending on the circumstances and as King_Maker pointed out, assuming Mr A had permission to sublet.

I was pointing out from the original post that firstly the income does need to be declared.