Rental Property just bought Mum 20% and Son 80%
The plan is to rent it with the Son receiving ALL the rental income.
I'm looking for the HMRC guidance on whether such treatment of rental income is allowable and how the IHT situation is effected.
Can anyone point me in the right direction please.
Ta
Replies (1)
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HMRC guidance
See here:
http://www.hmrc.gov.uk/manuals/pimmanual/PIM1030.htm
Rents divided in a way which don't reflect actual ownership are acceptable provided they reflect the reality (i.e. if son actually gets all the profit, son should be taxed on it all). It's different for properties owned by spouses or civil partners.
Cathy