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Rent a Room Relief

Our client wished to acquire a two-bedroom property for his daughter, who was to be studying at university in Glasgow. He asked what the best rental outcome would be.

How we helped our client
A member of our Property Tax team met with the client to explain how the property income would be taxed on our client, as the landlord. Our client is a 40% taxpayer. We discussed with our client whether the property could be bought in the daughter’s name and she could then rent a room to her friend.

Rent a room relief would ensure our client’s daughter paid no tax on that rental income.

Our client’s daughter acquired the flat and rents the room, tax free, to her friend. The parents are acting as guarantors of the loan for the daughter.

For more information or to discuss further, please contact the Residential Property Taxperts.

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