Readers' forum: Property letting

My single unmarried client owns a two-bedroom home – subject to a mortgage – and she lets a room to a lodger. The client is going to work abroad for a year or perhaps longer. She is thinking of letting the other room to another lodger or as a holiday let through Airbnb. The lodger – who the client trusts – has suggested that she could look after the property and the lettings and my client will pay her a percentage of the rent received.

If my client becomes non-UK resident I am wondering what the tax implications will be. Should tax be deducted from the rent before it is paid to her? Also how should the mortgage interest be split between lettings and are there capital gains tax or other tax and financial implications?

Query 19 393– Landlord.

Reply by SWI

Advice should also be taken on liabilities in the country...