My client bought a house (arms length transaction) but the seller's new house was not ready for occupation. My client rented the house back to the seller for a nominal £1 pcm for 12 months under a formal tenancy agreement. The market rent was £2500 pcm. The purchase price of the property to my client was reduced by £30000, that is the £2500 market rent over 12 months. Am I correct in thinking that, for income tax purposes, the full market rent is chargeable as rental income on my client?