Enrol now on the free landlord tax strategies course

To enrol in the 7 tax saving strategies email course complete the form below. The first module will be emailed to you immediately.

Enrol now on the free landlord tax strategies course

Thank You!

Free Tax Saving Strategies Course
The seven FREE property tax busting strategies course reveals the secrets of how to legitimately beat the taxman and boost your property profits!
View All Questions

Can he gift me a percentage of the property?

I am helping a friend to buy his flat from the council under the right to buy act - as he has no means to acquire a mortgage and I have the cash to pay for it outright. The idea is to then rent the flat out and the rent will be paid back to me, and I will declare the income myself. Shall I have a solicitor draw a personal mortgage, or can he gift me a percentage of the property, so that I can collect the rent?

Arthur Weller replies: 
From your perspective you are best off drawing up legal documents showing that you have a charge on the property for the amount of the loan. Additionally you should arrange that you own a small percentage of the property, even 1% will do. Then you can draw up a written agreement between you that even though you only own 1% of the house, nevertheless you will be entitled to and receiving, let's say, 100% of the rental income - see www.hmrc.gov.uk/manuals/pimmanual/PIM1030.htm.

Property Tax Insider This sample question and answer is taken from Property Tax Insider, a monthly UK tax saving magazine for landlords and property investors.

The first issue is free so click here to try today!

Got a burning tax question?

Why not submit a tax question to our tax advisors

Ask a Question