Hi All
A quick and probably stupid query. A client has just purchased a rental property which will be let to a member of their family at a slightly lower commercial rate but still enough to make a taxable profit. There is a rental agreement in place. Does the income still get taxed as normal as it is a family member?
Any comments would be great.
Best
Loner
Replies (2)
Please login or register to join the discussion.
Non-commercial letting
If by "slightly lower commercial rate", you mean slightly lower than a commercial rate, there is no problem with deducting costs up to the amount of the rent, but you cannot turn the property into a loss. See the HMRC guidance PIM2220.