property rental income split

property rental income split

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two parent want to give their child one third of a rental property they own.

A) can they do this and keep the rental income themselves?

b) would the child incur any cost on receipt of the gift? or would the parents?

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By King_Maker
16th Sep 2014 17:10

Is the child over 18 years old?

Has the property risen in value since acquisition?

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By MET128
17th Sep 2014 16:55

Yes, over 18 - sorry child was a misleading term. I should have said son.

 

the property is a rental flat and has gone up about £20,000 since purchase 2 years ago.

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By King_Maker
17th Sep 2014 20:54

1. CGT is unlikely to be payable on the gift, unless your Annual Exemptions have been used elsewhere.

2. SDLT unlikely to be in point unless the property is mortgaged and above the threshold.

3. Rental sharing by non-spouses can be by agreement and does not have to reflect the capital sharing ratio/beneficial interests. Good paperwork is recommended.

Have you discussed the situation with your accountant?

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