#2



Hi,



I am renting a property to a dependent family member at below market value. In fact the rent just covers the mortgage and insurance.



We are not doing it as a business, just helping them out. Should we be declaring it and will be liable for tax!



Any advice greatly appreciated.
Originally posted by Geez_ah


YES you must declare it to HMRC and fill out a self assessment.



Would you be liable to tax? Maybe. Only the interest charged on the mortgage is an expense (not the full payment) and if you're a higher rate tax payer in the next few years changes are being made so you only get relief at 20% on the interest expense and not at your marginal tax rate. You can also claim for maintenance and insurance.

#3
As you've mentioned the mortgage, have you checked whether your mortgage permits rental to family members? This will in all likelihood be a Regulated BTL situation, which has very few products available.

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