Do I still pay tax if I am renting to a family member?
Question I am renting a property to a family member at below market value. Am I still liable to pay income tax on any rental profits and CGT when I sell the property? Are there not any family relief’s that I can use?
Also, properties not rented out at a normal commercial rate must be kept separate when calculating income for tax purposes- the loss cannot be offset against other rental profits, only profits from that same property.
There are no family relief’s available- dependent relative relief was scrapped for new properties in around 1988.
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