If I charge my son for using a room in my house to run a business, can he take the costs to reduce his own tax liability? He is self-employed and working from my home in IT. Also, is it going to affect my tax position if I sell the house at some point in the future? 

Arthur Weller replies 

Yes, your son can take the costs to reduce his own tax liability. This assumes that you charge him a commercial rent (i.e., the same rate that you would charge another person to use your property). He should be able to show that he actually transferred the money to you. If the room is used exclusively for renting out, it will restrict the amount of principal private residence relief from capital gains tax that you will be able to claim when you sell the house. See HMRC’s Capital Gains Manual at CG64663.