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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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What are the tax implications of allowing my daughter to live

Resolved Question:

what are the tax implications of allowing my daughter to live rent free in a previously rented out house? The income was £6600 per year
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

If you let a property at less than the market rate or rent free to a connected person such as your daughter, then your claim for expenses incurred on that property will be restricted to a maximum of the level of the rent your daughter pays. Any excess expenses cannot be offset against other property income or be carried forward to offset against future rental income.

Take a look here and here for the rules in some detail.

I hope this helps but let me know if you have any further questions.

TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.

Thanks for this - would this be counted as a gift to my daughter? If so would she be liable for tax?

What would I have to put on my self assessment form if I don't receive any rent?

Expert:  TonyTax replied 2 years ago.
No, it wouldn't be a gift unless you gave your daughter ownership of the property.

As far as the self-assessment is concerned, put a note in the white space to tell HMRC that the property is occupied by your daugher rent fee.

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