CG65610 - Private residence relief: dependent relative: rent free: payments made
ESC/D20
TCGA92/S226(1) refers to the payment by the dependent relative
of `any other consideration'. So, on the wording of the
legislation, any payment by the dependent relative to the claimant
will prevent relief. Interpreted literally this is unduly
restrictive and is relaxed by ESC/D20, the text of which is
reproduced in leaflet IR1.
Relief will not be lost where the dependent relative
- pays all or part of the occupiers council tax or rates, and/or
- pays the cost of repairs attributable to normal wear and tear, and/or
- makes other payments, provided that no net income is receivable by the individual, taking one year with another.
It does not matter if the payments are to the individual claiming the relief, for example, a contribution to his or her payment for repairs, or direct to a third party. This is illustrated by the examples at CG65616.
