My client is renting out his property in Manchester and moving to London. He will be renting a property here to live.
The rent from Manchester’s property will go to his mum who is a retired person and above 65.
Total rent will be around 4-5k p.a.
Does he has to pay tax on that? Although he is the owner of the property but will not be receiving rent as it will go to her mum so does it make her mom liable for tax?
And is it not unfair with someone renting his home at £500/month and living in London on £1300/month to pay tax on rent he will receive which is obviously way less than what he will be paying in London?
Many thanks in advance for any replies.
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Does he has to pay tax on that? Although he is the owner of the property but will not be receiving rent as it will go to her mum so does it make her mom liable for tax?
I take it you aren't an accountant.
In answer to your other question, yes, tax is unfair. They take a proportion of your earnings. Disgusting.
When you say 'My client...' I hope you are not an accountant asking the sort of questions that you have.
Does he’has’ to pay tax? He, then she. Mum, then mom. Tax, like language, is confusing and nuanced.
"My client" - would suggest that you are a professional adviser?
You say that "your client" is "renting" out a property in Manchester. Who do you think should account for the transactions?