Can i allow my Son & Family to live in my 2nd home rent free ? No mortgage.

Shipintheharbour

I have previously rented my 2nd home (no mortgage) to my Son and his family, but I now intend to cease charging rent.  They will maintain and improve the property. Are there any tax implications ?

DE_612183

in what sense?

for you or for them?

CGT will apply when you sell the property - but that would have happened anyway.

Bigphil1474

There are always complications for both sides when renting to family. If I were you, I'd seek professional advice. If you were paying tax on the rental income before, you might get asked what happened to that. I suspect HMRC will often hear people say they no longer charge rent to family, so there's no tax to pay, when they really do. Not saying that's you, but you might be better charging a peppercorn rent than no rent at all, hence seek professional advice. As above CGT would apply anyway. You would probably still need a rental agreement in place.

MyRealNameToo

Insurance can also be more of a headache as if you insure it under a Landlord policy it often requires rental agreements to be in place with tenants etc

Smalltownhypocrite

I don't know what your situation is or if this even applies but theres sometime loophole in renting.

I know in the great 'right to light' issue in the past rail companies for a long time only charge negligible amounts in rent just to keep their 'rights to build on the land' rather than as a profit making thing.

Maybe you can create a tenancy with a super low rate. If you are on UC or any income based benefit though they will question it and expect you to charge standard rates though.