Jump to content

Splitting the rent to reduce tax


howard bray

Recommended Posts

Hello 

 

I'm in the process of remortgaging a property to a buy to let. I will have 100% of the property in my name. 

 

As everyone knows, over the next few years the tax relief is changing. I was looking for information on splitting the rent. As I'm a higher rate tax payer, I'm going to get hit with 40% which is not ideal. 

 

My mother has recently retired, so is it possible for her to rent out the property and get taxed on her rate? 

If possible, would she have to be on the title deeds? 

 

Thanks 

Howie

Link to post

Your mother would need to be a legal owner of the property,  you can do that through a Transfer of Ownership or a Declaration/deed of trust.  As this is your mother and not a spouse then you will have to be careful about stamp duty and CGT.  More importantly there are inheritance tax issues if your or your mother were to pass within 7 years.

 

 

 

 

 

 

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...