Is contribution to mortgage allowable?

Is contribution to mortgage allowable?

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Client has one property in joint names with his wife which they let out . They have now purchased another property in joint names with their daughter. The mortgage and the title deeds are in all 3 names. The daughter pays all the running costs of the house including the mortgage, however client sometimes helps out with a cash contribution to the mortgage.
Can the client claim any costs back for this cash contribution or does the fact that no letting is taking place debar this?
John #55

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Chris Caspell CTA TEP
By ccaspell
08th Jan 2008 00:03

I can't see how...
...this would be allowable.

What would it be allowable against? Letting income? The property is not let. The client's other business income (if there is any)? It is not a cost wholly and exclusively of that business.

I think that the money is either a gift or a loan. If it is a gift there may be grounds for IHT exemption if the gift is regular and out of income, but I don't think this is any more than a PET with no IT deduction possible.

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