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Rental Income

Transferring rental income to a family member

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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.

 

 

Replies (7)

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By Accountant A
08th Apr 2018 13:23

Quote:

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.

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By Wanderer
08th Apr 2018 14:34

When you say 'My client...' I hope you are not an accountant asking the sort of questions that you have.

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By Cheshire
08th Apr 2018 16:53

'Unfair' - you could just not bother moving. Problem solved ;-)

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By andy.partridge
08th Apr 2018 19:15

Does he’has’ to pay tax? He, then she. Mum, then mom. Tax, like language, is confusing and nuanced.

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Replying to andy.partridge:
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By Chipette
08th Apr 2018 19:57

I assume the OP is not a native speaker.

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Replying to Chipette:
Oaklea
By Chris.Mann
09th Apr 2018 10:21

Perhaps Aweb (Sift) could be persuaded to provide interpreters?

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Oaklea
By Chris.Mann
09th Apr 2018 10:19

"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?

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