is mortgage reimbursal taxable?
Hi, my client has taken out a (repayment) mortgage and purchased a house for his elderly father to live in, as the father was unable to obtain a mortgage himself. The father reimburses the whole of the mortgage payments made by the son.
I believe that the reimbursements are taxable on the son as property income, unless a declaration of trust is drawn up naming the father as holding the beneficial interest. (The father also contributed the deposit and made a lump sum payment towards the mortgage, these amounted to a third of the purchase price in total).
I would be very grateful to receive any comments as to whether my understanding is correct.
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