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Do I declare income tax on part owned property?

I part own a house with my Dad yet he collects and keeps the rent. Do I declare this as income?

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So I part own a property (outright) with my Dad yet he collects the rent and sorts out any issues with the property all through a letting agent. Do I have to declare this as income even though I don’t see any of it? Especially with tax credits and on self assessments forms. I don’t want to fall foul of something and take a risk on something I’m unsure about.

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21st Jan 2019 20:32

Afterburner wrote:

Do I have to declare this as income even though I don’t see any of it?.

Yes you do. Why would you not declare income arising from an asset that you (part) own?

I give my salary to my wife each month. Does that make it her income? Of course it doesn't.

Get yourself an accountant as soon as possible.

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to Accountant A
22nd Jan 2019 06:36

Accountant A wrote:

Yes you do. Why would you not declare income arising from an asset that you (part) own?

You sure???
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to Accountant A
22nd Jan 2019 09:37

Accountant A wrote:

I give my salary to my wife each month. Does that make it her income?

It does, doesn’t it? It’s not taxable on her because she hasn’t earned it (she might disagree, being married to you, but that’s between the two of you) and it’s not investment income. More to the point it doesn’t stop being taxable on you just because it’s hers really (everything you have is hers, if your wedding was long enough ago to have that in your marriage vows) and the tax system isn’t so daft as to tax both of you on it.

What any of that has to do with income from jointly owned property though is beyond me. How did the property come to be owned jointly? Does “my Dad… collects the rent and sorts out any issues with the property all through a letting agent” mean that Dad is keeping the rents for himself? Are the rents perhaps paid into an account for the future benefit of both owners? What’s the full picture? Why again are we being asked to answer questions with half the facts missing?

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to Tax Dragon
22nd Jan 2019 11:34

Tax Dragon wrote:

It does, doesn’t it? It’s not taxable on her because she hasn’t earned it (she might disagree,

My point was that one-time posters consistently come here saying income is paid into someone else's bank account - apparently believing that that fact alone changes the characteristic of the income.

Whether there is any agreement between the parties is not stated.

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to Accountant A
22nd Jan 2019 12:00

Sorry that comes across as justifying what was stated quite categorically by you but could well be the wrong answer depending on the circumstances.

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to Accountant A
22nd Jan 2019 12:41

Charging provisions within tax legislation are almost invariably accompanied by provisions that say who is taxable on the thing charged. Even for something as “obvious” as employment income, this takes at least two rules (s13(2) and s13(3)). Incidentally, these confirm that you, not you wife, is (are?) taxable on the income from your employment. As others have suggested, the rules for liability in relation to property income can be more nuanced. Unlike some punters, the OP has raised a valid question. But, I wonder, what goes before that opening “so”?

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21st Jan 2019 22:10

Why don’t you see any of it? Has he stolen it?

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By jcace
21st Jan 2019 22:52

What have you agreed between yourself and your dad in relation to how the income is shared between you? To quote HMRC's own manual "the share of any profit or loss arising from jointly owned property will normally be the same as the share owned in the property being let. But joint owners can agree a different division of profits and losses and so occasionally the share of the profits or losses will be different from the share in the property. The share for tax purposes must be the same as the share actually agreed."

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