Control but not own

lostinrates

novazombie wrote: »

My father is fine about it, its such a simple plan.

I will lend him my money (around 200K) on a private mortgage. He will then buy a house in N,London to rent out. I will have a charge for 200K on the property.

We will rent it out I will do all the work and manage the place deal with the tenants etc, also I will keep on top of the paper work.

We have a good accountant who my family has used for years. He understands the situation very well.

So I will keep all reciepts for maintanence insurance and expences.


My father will have about 300wk rent coming in on top of his state pension, I plan to have an expensive mobile phone contract and lease car and other things in his name that I will use. Probably about 100wk expences.

So we should only have to pay 20% tax on the 200 profit, is that right?

Any other things I havent seen yet why the plan wont work?

This would be less sad if I wasn't looking at an auction property/repo where the previos owner/vendor says such similar things ATM. Fwiw that person used one of their parent's names too; and yes, they too seem to be suffering.

novazombie

lostinrates wrote: »

This would be less sad if I wasn't looking at an auction property/repo where the previos owner/vendor says such similar things ATM. Fwiw that person used one of their parent's names too; and yes, they too seem to be suffering.

Care to explain yourself?

Thrugelmir

novazombie wrote: »

My father is fine about it, its such a simple plan.

I will lend him my money (around 200K) on a private mortgage. He will then buy a house in N,London to rent out. I will have a charge for 200K on the property.

We will rent it out I will do all the work and manage the place deal with the tenants etc, also I will keep on top of the paper work.

We have a good accountant who my family has used for years. He understands the situation very well.

So I will keep all reciepts for maintanence insurance and expences.


My father will have about 300wk rent coming in on top of his state pension, I plan to have an expensive mobile phone contract and lease car and other things in his name that I will use. Probably about 100wk expences.

So we should only have to pay 20% tax on the 200 profit, is that right?

Any other things I havent seen yet why the plan wont work?

The Inland Revenue would question the items claimed as business expenditure in your accounts and disallow for tax purposes.

crazygaijin

Is the any good source of information of what is allowed as business expenses? Can someone recommend a good site for reducing the taxable profit from property rental income?

poppysarah

The inland revenue have some info don't they?
Get an accountant.

Thrugelmir

crazygaijin wrote: »

Is the any good source of information of what is allowed as business expenses? Can someone recommend a good site for reducing the taxable profit from property rental income?

There is no hard and fast rule. A definition is " an expense that is ordinary and necessary for carrying on a trade or business".

The Inland Revenue would question anything dubious in your accounts so there's no point in being too creative.

wannabe_sybil

crazygaijin wrote: »

Is the any good source of information of what is allowed as business expenses? Can someone recommend a good site for reducing the taxable profit from property rental income?

What an interesting signature you have - completely against the rules, of course, normally, but you did get permission - didn't you?

novazombie

My father is going to `borrow` 200K off me to buy a rental property in London. We should be able to rent it out for about 300wk.

So I will have a charge on it for 200K but the owner will be my father. He will be paying me interest only, about 100wk.

He also has some `hobbies` or kind of businesses so I can have many other expenses to reduce the taxable profit from the rental income.

I will lease a car in his name and have a good mobile contract also in his name all expenses. Pluss many other things that will reduce the profit.


As far as I can see this is all above board and nothing wrong with it.

Any intelligent coments would be appreciated.

Emmzi

nova, still recommend advice from solicitor and accountant. I'm not sure how transparent this tax evasion / gratuitous alientation would be. Plus, you then have an 'asset' of a 200k loan balance outstanding which technically you could be persued for ie you could be forced to sell the loan if a court decides you have to make a payment.

Thrugelmir

novazombie wrote: »

My father is going to `borrow` 200K off me to buy a rental property in London. We should be able to rent it out for about 300wk.

So I will have a charge on it for 200K but the owner will be my father. He will be paying me interest only, about 100wk.

He also has some `hobbies` or kind of businesses so I can have many other expenses to reduce the taxable profit from the rental income.

I will lease a car in his name and have a good mobile contract also in his name all expenses. Pluss many other things that will reduce the profit.


As far as I can see this is all above board and nothing wrong with it.

Any intelligent coments would be appreciated.

Suggest you get some professional advice from an accountant and a solicitor. You seem to have little knowledge of contract law, taxation etc.

The fact you wish to hide the money. Suggests you know that you are in the wrong. You may find yourself with a very legal bill if you're not sensible.