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S24 and Minors

Even if income is attributed to the parent could it be worth gifting mortgaged properties?

If a landlord is going to be affected by S24 as a higher rate taxpayer but has a child that had no income is there anything stopping a gift to the child?

 

I accept the income will be taxed on the parent anyway but what will the taxable profit be? The net profit after interest deduction is presumably the figure placed in to the parents comp? If so does this sidestep S24?

Accepting CGT and IHT GROB etc.

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02nd Nov 2018 01:10

m.wardle2 wrote:

If a landlord is going to be affected by S24 as a higher rate taxpayer but has a child that had no income is there anything stopping a gift to the child?

If the property is mortgaged, it's unlikely the lender would agree to it being gifted to a minor. Or am I missing something?

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to Accountant A
02nd Nov 2018 07:35

Do you laugh or cry when you read these tax planning ideas on AA?

There is an interesting tax technical point underlying the question though. But it's lazy of the OP to "put it out there" without any analysis of her/his own.

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to Tax Dragon
02nd Nov 2018 11:33

Tax Dragon wrote:

Do you laugh or cry when you read these tax planning ideas on AA?

I'm not in practice and used to think that I lacked the knowledge required (had I wanted to try my hand). Reading Any Answers makes me think I would probably be more competent than 90% of the people who post questions.

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02nd Nov 2018 10:50

WTAF? S 24 of what?

It's like a pie with a soggy bottom.

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to Portia Nina Levin
02nd Nov 2018 11:45

TBF, 'twas s24 of FA(No2)2015 what brung in s272A of ITTOIA. But yeah, the OP's laziness extended to the citations.

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to Tax Dragon
02nd Nov 2018 12:32

I actually thought it was s 24 of the original bill, which found its way to e new number before it made it to an act, but I was wrong.

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to Portia Nina Levin
02nd Nov 2018 11:58

And, to be further fair, I think it's a creative bit of thinking by someone.

But I no longer think it's an interesting question. You don't need to read very far to get the answer.

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