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Rental Income and reporting

Owner has received no rental income

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Hi I have a client who owns 3 rental properties - all mortgage free.

during the year no rental income or expenses have been provided for one so when queried the client replied that the income was received and retained by the girlfriend. So basically he has let his girlfriend rent the property out to receive income which she has kept as he didn't need the money.

is that allowable? Would a charge not need to be made to the girlfriend? She is effectively renting it from him for £0 and then subletting

Many thanks 

Replies (3)

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By lionofludesch
23rd May 2020 12:59

His property, his income.

Can he produce this mythical letting agreement with his girlfriend ? I'm guessing no.

If he wants to give the money to his girlfriend that's fine but it's still his tax bill.

Obviously, he could transfer legal title to her but he may not want to do that.

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By SXGuy
23rd May 2020 13:12

Oh come on. His property. His rental income. What he does with it is his choice. If it was so easy to avoid tax by letting someone else receive the rent we'd all be doing it.

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By frankfx
23rd May 2020 23:24

Presumably the girlfriend is paying insurance?

Gas check?

Tenant Checks?

or is there an agent involved who has neatly overlooked their due diligence?

Likewise your client seems to have conveniently overlooked the niceties.

Sounds like a cash in hand arrangement requiring a reality ''cheque''.

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