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Ownership of furnished holiday letting property.

My husband and wife clients have a number of residential buy to let properties, all owned jointly.

 
In 2009/10 they purchased a holiday cottage in Scotland, which has been rented out as a holiday let.
 
My question relates to the ownership. My client’s advise me that it was purchased jointly with her father, and it is legally owned in the proportions of 50% sole name of father and 50% joint daughter / son in law. 
 
Father invested cash, and daughter / son in law (my clients) remortgaged their home to raise their share.
 
The father has no involvement in the property and takes no income. His share was seen by them as more of a loan.
 
Can anything be done to simply how the property income is taxed. 

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12th Jan 2011 14:30

Equal shares

As far as i understand this property income is always taxed in equal shares unless a valid electon has previously been made to split the income in the capital ratio.

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