Surely I cannot be classed as a Landlord?
Hi, My Tenants moved out a few months ago so I have a house standing empty I’m paying Council Tax on which is near my Son’s University.
My full-time student Son stays there a couple of nights a week but has asked to live in the property full-time (obviously rent-free). I would also help him out with bills.
I’m just thinking of doing this to help my Son out but obviously his Student Council Tax exemption would prove useful to myself and it makes sense to have someone living in the property to keep an eye on things and with maintenance.
As I would be basically just a Dad giving my Son a property to live in, FREE of charge, would I still be bound by the usual Landlord rules, regulations and Licensing i.e providing Gas and Electricity Certs and registering for a license scheme or have to sign on to a Landlord’s Register?
If I’m not charging anything surely I cannot be classed as a Landlord?
Many thanks
Godfrey
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Member Since October 2013 - Comments: 1642 - Articles: 3
12:10 PM, 21st January 2025, About 1 year ago
Maybe I’m missing something here, but if this house is owned by the parents and occupied by the son rent-free, but not precluding the parents from also living there whenever they want, and with no tenancy involved, why is there so much discussion?
It’s like my partner allowing her son to live in her house, rent-free, while she lives with me. She doesn’t need gas and electricity safety certificates, albeit she has them anyway, and her son could claim council tax exemption because he’s a student.
Member Since April 2023 - Comments: 176
12:24 PM, 21st January 2025, About 1 year ago
Reply to the comment left by NewYorkie at 21/01/2025 – 12:10
It’s because we live in fear now of doing anything wrong. It doesn’t help that HMRC, Council Department, mortgage companies, insurance companies all have different rules for the same situation.
Member Since January 2025 - Comments: 57
10:26 PM, 21st January 2025, About 1 year ago
Reply to the comment left by NewYorkie at 21/01/2025 – 12:10There is so much discussion because someone at the Council will get green with envy that your parents own more than one property, and because Council’s need to raise funds, they will do their very best to try and somehow find a way to fine you for ‘breaching’ the regulations.
Member Since October 2013 - Comments: 1642 - Articles: 3
12:17 PM, 22nd January 2025, About 1 year ago
Reply to the comment left by Billy Gunn at 21/01/2025 – 22:26
I’m sure you’re right, but what regulations are being breached?
There’s no tenancy and hence no need for licensing. CT exemption for students isn’t dependent on a tenancy. What else could the council stick their noses into?
Member Since March 2023 - Comments: 1506
8:32 AM, 23rd January 2025, About 1 year ago
I had the same with my daughter. I gave her an AST agreement thus avoiding council tax which she didn’t have to pay.
As for living rent free, well yes BUT HMRC won’t view it that way as even though you are not charging a rent then there is a nominal rent for the property – you are providing a benefit in kind
Member Since April 2023 - Comments: 176
9:59 AM, 23rd January 2025, About 1 year ago
Reply to the comment left by GlanACC at 23/01/2025 – 08:32
Yes but benefit in kind is paid by an employee. So surely benefit in kind can’t apply in this situation. The only thing I think applies is the fact you cant charge any expenses against the property during the time it is loaned to your family for free. But that’s common sense isn’t it?
Member Since March 2023 - Comments: 1506
12:06 PM, 23rd January 2025, About 1 year ago
By benefit in kind I mean that the company is in effect paying the rent – which means that you the director (presumably) is ‘drawing’ the nominal amount of the rent (which I guess will be treated as BIK)
Member Since September 2024 - Comments: 95
9:37 PM, 24th January 2025, About 1 year ago
Reply to the comment left by GlanACC at 23/01/2025 – 12:06
I am not a Company. I’m just a Dad with a student Son who needs it.
Member Since March 2023 - Comments: 1506
8:27 AM, 25th January 2025, About 1 year ago
Reply to the comment left by Godfrey Jones at 24/01/2025 – 21:37
OK, so to put it in simple terms as you are not a LTD company.
If you own the property, but ARE claiming expenses against your income (which will be zero if the property is given to your son rent free) then in effect you are depriving HMRC of tax revenue.
(If this was the norm, I could get my son buy my house and let me live in it free and he could claim expenses for repairs etc – which is clearly ridiculous)
If you just own the property and claim nothing from HMRC then I can’t see a problem with that
Member Since October 2013 - Comments: 1642 - Articles: 3
10:21 AM, 25th January 2025, About 1 year ago
Reply to the comment left by GlanACC at 25/01/2025 – 08:27
That’s what I’ve been saying. There doesn’t appear to be any business involved here. Just do what you want to do.