Activities on Tier 1 visa

[ram80]

Hi guys,

Is it illegal to sublet a room in your house to somebody else when you are on a tier 1 visa?

Why I am asking this question is that in my understanding a tier 1 visa holder is not supposed to engage in business outside employment or self-employment, and deriving a rental income may be a business that is not permitted for tier 1 holders.

Is this true? Are there any such limitations that apply to T1G dependants also?

[ram80]

Any thoughts?

[mulderpf]

No it's not illegal, as long as it's allowed by your tenancy agreement. However, if you are sub-letting your place you will not be able to claim this income for the purposes of Tier 1 extension or ILR as this is not your business (unless you will be sub-letting a whole lot of places). But you still need declare and pay tax on that income.