Peppercorn rent and deductions - USERNAME: Niki - 20/03/2019

Tax Question:

Hello

I own a property with my mum as tenants in common. My share is 40% and her share is 60%.

Can I rent my part of the property to her for a peppercorn (or ?0) per month but deduct my share (40%) of the deductible expenses in my tax return - I.e. 40% of the service charge, ground rent, insurance, repairs?

Answer:

No, I would not think this would be possible. Firstly it would be an uncommercial arrangement and the deduction would be restricted given the lack of rental income.