Rent a room scheme question

S

sean765

Guest
Hi

Myself and my now ex girlfriend bought an apartment about 18 months ago and have lived in it up until now. Unfortunately the relationship has ended and we are deciding what to do with it. I am considering staying there and renting out the other room.

Since we are both co-owners (didnt pay stamp cos we were first time buyers), under the rent a room scheme am I entitled to do this if only myself as part-owner is living there or would there be a stamp clawback involved?

I read the relevant part on oasis but it doesnt seem to mention anything about co-ownership with regard to my case. I would rather not sell it at this stage unless we have to. thanks
 
thanks i reckoned that was the case but still unsure whether i'm entitled to the use the RAR scheme given that only one owner will be using property as their principle private residence
 
Hmm.. Fair point alright. Perhaps you may need to contact revenue for clarification.
 
sean765 said:
I am considering staying there and renting out the other room.
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Given that even with this, should the RaRS apply, it'll be a complicated situation on sorting out the finances between yourself and your ex it may be worth seeking the advice of an accountant.

If you do continue to live there with the RaRS will you take out a mortgage to buy out your ex? Can you both agree on the exact figures involved? Is it a clean 50/50 ownership or has one party contributed more?

Simply on the RaRS, never come across details of the co-owner situation before so can't comment. As the situation as a whole can/will/could be complicated anyway it may be best to seek professional help and let them help guide on this issue also.
(I'd be interested to hear on the answer to that question should you find it, do let us know if nothing here clears it up)
 
Satanta said:
If you do continue to live there with the RaRS will you take out a mortgage to buy out your ex? Can you both agree on the exact figures involved? Is it a clean 50/50 ownership or has one party contributed more?
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This is of course a likely scenario and we have discussed same, but I would be interested in staying there for a short while for my own reasons if possible. We co own 50-50 and it was an amicable split-we both still live there now but its time to move on so we're exploring all options.

I'm not too optimistic now having gotten this feedback but i'll be onto revenue and let you know!

About rental income-I don't think she'd be getting anything really -I know what you're saying its her place as well but if I am able to do this then any tenant I get in would just be helping me pay off the part of the mortgage she would not be paying in the future, and said tennant would be able to claim their own relief on the room.
 
If your girlfriend is not receiving any rent from the property than Rent a Room applies subject to the limits. Qualification for Rent A Room is only on the basis that you occupy the proeprty.
 
jfitzer said:
If your girlfriend is not receiving any rent from the property than Rent a Room applies subject to the limits. Qualification for Rent A Room is only on the basis that you occupy the proeprty.
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dont understand what you mean there- I myself would be occupying the property if this is on, but I'm only joint owner so that was my original question.

Clubman> yes I read that it means that you would file a return to revenue on any amount you receive in excess of that figure-correct?
 
You register for the rent a room scheme and file a return even if you are below the threshold (no tax due). If you receive an amount in excess of the threshold you are taxed on the lot.
 
What I mean is that if your girlfriend is not receiving any rental income from the property the property will not be liable to stamp duty clawback and as you are living in the property you can claim the rent a room exemption subject to the monitory limit. The fact that you are co-ownersis not an issue for the Rent a Room Scheme. For example, if you are renting a property as opposed to being an owner and you rent out a further room in the proeprty you can still claim under Rent a Room.
 
Are you sure about that jfitzer, I always thought you had to be an owner occupier to qualify?
 
So if I let out a house, the tenant can then sub-let it under the RaRs? Subject to my permission I presume. Any links that I could read up on?
 
Im pretty sure you have to be living there as an owner in order to rent a room under the scheme-otherwise the property would be classed as an investment property wouldnt it?

Anyway if what you're saying is true about revenue not being concerned about co-ownership for rent a room then it would be do-able in my case but I'll be checking it out.
 
Was just looking for it for you. See page 41 of the attached.

[broken link removed]
 
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