What's the tax position on rental income received by joint owners?
We are 3 brothers who own a house which is rented out. Does the rent received have to be divided between us for tax reasons or is it possible for one or two of us to have it only on our books?
Arthur Weller replies:
You are allowed to come to an agreement, preferably written and before the start of the tax year, that the rental income will be received in a different proportion to the ownership of the property. Make sure that the rental income is only received in the right bank accounts according to the rental agreement. See hmrc.gov.uk/manuals/pimmanual/PIM1030.htm.
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