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Let property.

Let property.

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I have not come across this situation before. Son owns a property 100%. The mortgage is in joint names with father as is the tenancy agreement.

Does the rental profit require to be shown wholly in Son’s tax return or  equally with father?

What about capital gains in the future?

My inital think is that it should be in joint names but not 100% convinced.

Thanks in advance

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By lisler
13th Aug 2013 20:45

Legal ownership is not the determing factor

tax legislation recognises that the legal owner of an asset is not necessarily its beneficial owner and that it is beneficial ownership which the tax principally follows.  You need to clarify who benefits from the income from the property. The name of the mortgagor is a factor not the determining factor.  Look on Baiili at Mrs Yvonne Lawson v. Revenue & Customs [2011] UKFTT (346 (TC)  

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