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

[footyfan]

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!

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).

Full details, probably more than you need are here

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