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Tax return: can I include property with no rental income?

(4 Posts)
footyfan Wed 17-Oct-12 11:45:58

I am buying a property, which my mother will live in rent free.

I will have a mortgage: does anyone know if I can include these payments on my tax return, even though there will be no income? Would it make a difference if I charged a nominal fee - e.g. £10 a month?

I already own another property and include those mortgage payments on my return - but I think I remember that the property has to be actively marketed for rent / or rented out to do this. Not sure whether someone living rent free counts.

Hope this makes sense!

riksti Wed 17-Oct-12 17:56:34

No, you can only include expenditure for properties that actually generate income - is the simple answer.

If you charge her nominal rent you can offset expenditure to the level that reduces your profits from THAT property to £nil. So if you charge your mother £10 per month then you can offset £120 of mortgage interest against this income annually (provided you've paid this much in interest of course).

riksti Wed 17-Oct-12 18:01:49

Full details, probably more than you need are here

footyfan Wed 17-Oct-12 21:26:43

That's a shame! Thanks so much for the information though - just what I wanted.

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