Hi everyone. Having a bit of a tussle with a local HMRC compliance officer concerning my client.
Here's a brief summary
My client owns several properties with his partner (not husband and wife) All the income and expenses have been recorded on her tax return. The tax officer has opened an enquiry into my client stating that she has information from a 'contact' that my client solely owns 3 of the properties and as such has incorrectly completed his self assessment tax returns. She has asked for details of all properties, income and expenses and detailed supporting evidence with a view to assessing any liabilities. She has also stated that a Form 17 should have been completed if 50:50 split has been changed. She knows that my client is not married.
Am I correct in thinking that
1. My client is able to agree that even though he owns 50% of the property he can still agree to his partner receiving all of the rental income.
2. I am able to reply to the local compliance officer stating that no income was received from any of the properties and was correctly recorded on his partners returns for each year.
Thanks for all your wonderful help and advice. The tax lady in question is a bit of a dragon!!