Rental Income but with a Trust Deed

Rental Income but with a Trust Deed

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Hi All,

I have been asked to do a self asessment for a client who gets rental income from a property that is jointly owned by her 2 brothers. The father helped the sons purchase the building on the condition that all rent would go to her. This was enforced with a Trust Deed.

From an accounting perspective it it simple enough as it would be pure rent to the sister and get taxed as normal. And if it was sold, the proceeds / gains would go to the brothers.

Has anyone else come across this before and is it as simple as this? Or are there some other qwerks I need to be aware of?

Thanks guys.

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By Comptable
11th Jan 2018 10:51

It sounds like a trust with a life tenant - but life might not be the right term if sister's interest comes to an end if/when property is sold.
Have you read the trust deed? Is it clear? If so follow what it says - if not they need legal advice.

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