Defining a boarder

Question from Ruth updated on 2nd May 2018:

We currently live in a property owned by my parents and make a contribution towards the mortgage. There is a self contained one bedroom unit next to the main house that has a bathroom, kitchenette and washing machine. It was used as a B&B by previous owners. We were thinking of letting it out, and charging a flat fee inclusive of rent, internet, power, water, and sky tv. They could also make use of our dryer if needed. Would this count under as a boarder, if we are providing other services but not food? Or is it something else?

Our expert Mark Withers responded:

No. A boarder is someone who lives with you. If a self contained unit is rented the income will need to be returned by the owner of the property with costs apportioned relative to the area of the unit as a percentage of the overall area of the building.

Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.

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