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Q&A » Renting your home
I rent out a 4 bedroom house to Mr.A for £800/M and later Mr.A sublet 3 bedrooms to 3/4 different people and start getting 300/400 each room. I would like to know how many persons he can sublet and if he is getting more money then he is paying me as rent then he is liable to pay income tax on that money??? if yes who he has to contact or what he has to do??? please help.
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11Whether subletting is permitted will depend on the tenancy agreement - many agreements have clauses expressly forbidding subletting. More information from http://www.communities.gov.uk/documents/housing/pdf/138289.pdf. Unless stated in the tenancy agreement I don't think there is any particular limit on the number of rooms that can be sublet.
It is likely that Mr A would be liable to pay tax on his profit and would need to declare this in his tax return.
Posted on 10 March 2012 |
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