Are there Tax implications living in a rent free property

[ladyluck11]

I have a friend who recently left her husband and moved out of her family home. As a temporary (to possible long term) measure she is in a property owned by a close relative. (the relative lives else where) She does not pay rent but does pay all the normal utilitiy bills.

I recently read a newspaper article that referred to a couple living in an annex rent free and this could be considered a gift to the couple.

Are there implications to this arrangement both from a revenue point of view and from her pending separation?