Private residence relief: dependent relative: rent free: payments made
The income receivable by the claimant should be taken to include all sums received from the dependent relative as consideration for the provision of the property. This should include sums received towards repaying the mortgage, both interest and capital; whether received directly from the dependent relative or paid by the dependent relative to the mortgagee.
Deductions to arrive at net income
Against these receipts should be set sums paid by the claimant, or directly by the dependent relative, which would be deductible in computing income receivable under Schedule A. So no deduction can be made for payments of mortgage interest or capital. This is illustrated by the second example at CG65616.