Who pays the tax - the owner or receiver?

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My Dad owns a rental property but the income from the property goes directly into my account. Who pays the tax? My Dad or me?

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Psycho
By Wilson Philips
20th Nov 2019 21:55

One would instinctively say the father - but the devil is in the detail.

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By Bobsyouruncle
20th Nov 2019 22:43

Are there any details which I could provide you which would influence this? Me and my dad live together. He’s a pensioner and I’m self employed.

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By chicken farmer
20th Nov 2019 22:59

Perhaps you could explain the motive behind this arrangement

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By Bobsyouruncle
21st Nov 2019 06:33

The monies had come from my fathers account and I opened a new account at a bank just for the rental income to isolate it from our normal bank accounts. It was just the way it happened.

The reason why I ask the question is because I have set up to post a self Assesment tax return on the property but my father insists it his him who will be paying the tax. Just want to make sure before we make a mistake.

Funnily enough, I have also spoken to some accountants in the family who are also not quite sure on the answer. Apparentlly it’s a ‘grey area’?

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Replying to Bobsyouruncle:
By Tim Vane
21st Nov 2019 07:23

It’s certainly not a grey area. It is a very black and white area but to be certain one way or another it does require facts that are not available in your post. However on the balance of probability the income is taxable on the father. The various other potential tax issues raised by your post should probably be dealt with by you both seeking professional advice.

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By Bobsyouruncle
21st Nov 2019 08:17

Thanks for the help all.

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