David

If I have a second property which is used as a holiday let, and a portion of the deposit of that property was from the inheritance my infant children have received (and is now managed by me as a trustee), when I pay tax on the income of the let, do I deduct their percentage from the total income? e.g. if they gave 20% of the deposit, do I only pay tax on 80% of the income? Additionally, let's say there is a mortgage that is worth 50% of the purchase, in the above example do they represent 20% or 40% of the property.