Question:
Our daughter lives with us currently and is paying rent. Is it possible to claim tax exemption up to £7,500 (it will be considerably less) under the rent-a-room scheme for a family member, or does it have to be an external person?
Arthur Weller replies:
As far as I can see in the rent-a-room rules (see HMRC’s Property Income Manual at PIM4001), there is nothing that states the tenant must be an external person. There is no indication it cannot be a family member.
