Trust management expenses: allowable expenses: specific items: property costs
Where real property is held in trust on such terms that the beneficiary has the benefits of ownership either as tenant for life or on other terms that in effect confer the privileges of ownership, no allowance is due for any property expenses of as these will not be the trustees’ expenses. In this case, the situation is the same as in TSEM8750.
Some payments related to property properly held for the occupation of a beneficiary can be categorised as income expenses and are allowable TMEs. These would usually be the costs of
- maintenance of a freehold property
- rent or maintenance costs of a leasehold property, paid by trustees under the terms of a lease of which they are the lessees
* the property is properly held by the trust for the occupation of a beneficiary and * is actually occupied by a beneficiary, or the only reason it is not is because the property is in a state of disrepair that makes it uninhabitable and * the beneficiary is not occupying on terms that he or she meets those expenses.