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bigduckontax
bigduckontax, Accountant
Category: UK Tax
Satisfied Customers: 4191
Experience:  FCCA FCMA CGMA ACIS
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I currently own a home and my parents live in it as i work

Customer Question

i currently own a home and my parents live in it as i work away, they also pay the mortgage with no profit just correct amount, do i need to declare this
JA: The Accountant will know how to help. Please tell me more so we can help you best.
Customer: i currently own a home and my parents live in it as i work away, they also pay the mortgage with no profit just correct amount, do i need to declare this
JA: Is there anything else important you think the Accountant should know?
Customer: i personally rent a property for myself away from my current home and reside in both different times of the year
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Submitted: 1 year ago.
Category: UK Tax
Expert:  bigduckontax replied 1 year ago.

Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

You should declare the moneys paid to the lender by your parents as rentals on your Annual Self Assessment Tax Return. The following are the normal deductions which can be made from rentals [source: Which]:

'The most common deductions from rentals are:

  • water rates, council tax, gas and electricity
  • maintenance and repairs to the property (but not improvements)
  • contents insurance
  • interest on a mortgage to buy the property
  • costs of services, including the wages of gardeners and cleaners (as part of the rental agreement)
  • letting agents' fees
  • legal fees for lets of a year or less, or for renewing a lease of less than 50 years
  • accountant’s fees
  • rents, ground rents and service charges
  • direct costs such as phone calls, stationery and advertising for new tenants

The expense should be incurred wholly and exclusively as a result of renting out your property.'

These may well reduce the payments by your parents as taxable rentals to nil.

I do hope that you have found my reply of assistance.