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.

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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