Lodger in holiday home

[Emily Print]

Can I legally have a genuine (known & trusted) 'rent a room' lodger living in my UK holiday home (not my main residence) ?

The lodger would be living there when I am away from (and also when I am staying in) my holiday home.

The main purpose of a lodger (from my point of view) is to be sure my holiday home is occupied & looked after when I am not there & income from lodger helps to cover heating etc in holiday home.

No lodger in my main home, BTW, if that is relevent.

Thanks in anticipation.

[Tax Accountant]

Can I legally have a genuine (known & trusted) 'rent a room' lodger living in my UK holiday home (not my main residence) ?

The lodger would be living there when I am away from (and also when I am staying in) my holiday home.

The main purpose of a lodger (from my point of view) is to be sure my holiday home is occupied & looked after when I am not there & income from lodger helps to cover heating etc in holiday home.

No lodger in my main home, BTW, if that is relevant.

Thanks in anticipation.

Rent a room relief for a lodger is only available for someone living in your ''only or main residence'' and not in your holiday home. You will need to treat him as a tenant and be responsible for paying any tax due on net profits after deduction of allowable expenses.

You need to consider whether you are/were eligible to nominate the holiday home as your main residence for CGT purposes. But this will mean that your actual main home will suffer the PPR CGT relief for the same period as only one property qualifies for PPR relief at any one time. However, being able to nominate a holiday home (even for as little as one week) will most probably be hugely beneficial if and when you come to sell it in the future.

Best seek professional advice on your options.

Ramnik

[Emily Print]

Thanks, Tax Accountant.

[Tax Accountant]

Thanks, Tax Accountant.

My pleasure.
Pay it forward.
Ramnik