Poole Based HELEN KANOLIK, an independent financial adviser with PFM Associates in Poole is one of the 'Ask The Experts' in this weeks Daily Mail.
This weeks main question revolved around whether a family would be liable for tax on income generated through the letting out of their family home.
R. H. writes: Following financial problems in 2009, my son-in-law has moved his family into his parents' house, allowing him to let his own home for £1,200 a month. Does he have to tell Revenue & Customs about this let? And what about his mortgage company?
Helen Replied:
Yes, he does have to tell both Revenue & Customs and his mortgage lender. Any rental income will be liable to income tax, although allowable expenses can reduce the tax. Special supplementary tax return pages will be required.
His mortgage lender should really have been told before the property was let as the original loan was set up when the property was a main residence.
The mortgage conditions probably will not change, but when any initial mortgage deal ends, the loan may switch to a more expensive buy-to-let interest rate. Your son-in-law also needs to tell his insurance company and take out special buy-to-let cover.
Read more about Helen
here, where she will be more than happy to help you with any queries you may have.
Look out in the new year for Helen writing on our Bournemouth blog, with hints and tips to help you with your business and personal finance issues.