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Where Taxpayers and Advisers Meet

Becoming Non-Resident
Posts: 39
Joined: Wed Aug 06, 2008 3:05 pm

Postby » Mon Dec 10, 2007 5:33 am

I will be departing the UK at the end of March and will become non-UK resident. I will be renting abroad in Europe, my domicile is Australia where I will go back to in 3 years.

I own a house in the UK and will still be paying the mortgage whilst away. If I let 1 furnished room to a friend, can I claim their "contribution" under the rent-a-room scheme - I will return for the odd weekend etc under the day limit for the year.

Also, would any additional income from the property count against my personal tax allowance (If I also let the second room)? I.e £4250 from rent a room and £5250 from my personal allowance - before needing to declare the rent?


tax me less!
Posts: 983
Joined: Wed Aug 06, 2008 3:29 pm

Postby tax me less! » Mon Dec 10, 2007 7:27 am

From what you have said, HMRC would consider to you to be remaining UK resident because you will not have settled permanently elsewhere.

You would file a tax return as before.

Posts: 7894
Joined: Wed Aug 06, 2008 3:25 pm

Postby maths » Mon Dec 10, 2007 1:39 pm

Any other letting income from the same house precludes the rent a room relief from applying.

In addition the rent a room relief only applies to an individual's main residence which will not be the case as you will be living in other accommodation abroad.

"Tax me less" also makes a valid point, although depending upon various factors it should be possible for you to lose your UK residency on leaving the UK, albeit not perhaps on your current plans.
Posts: 39
Joined: Wed Aug 06, 2008 3:05 pm

Postby » Mon Dec 10, 2007 3:31 pm

Ok then. But would rent be able to be offset against my personal allowance? I.e. if the rent was under £5250 it would not need to be declared (if it was the only UK income)?

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