My husband and I live together in our main residence. The property is owned fully by my husband. He rents out a spare room in the property. Would the rent-a-room relief only be allocated to my husband as it is in his name or could it be allocated 50:50 as we live together and pay the bills jointly and deal with the renting room out jointly?

Arthur Weller replies:
Firstly, it is necessary to point out that when two people together rent out under the rent-a-room scheme, only a total of £7,500 relief between them can be claimed (i.e. £3,750 each). Secondly, there is an easy solution to your problem, i.e. put the property into joint names. But thirdly, if you look at HMRC’s Capital Gains manual (see www.gov.uk/hmrc-internal-manuals/capital-gainsmanual/cg22020 & cg65310) you can see that the courts have powers to recognise the equitable interests of a spouse in the matrimonial home, even though that spouse does not have legal title. See also HMRC’s Trusts and Estates manual (at www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9305 and 9705)