Two family properties in my name, need to buy own home - tax/mortgage implications?!

RAS

shop-to-drop wrote: »

I'm wondering if the flat was purchased in your name as a first time buyer to avoid paying stamp duty initially? If so may end up being an expensive mistake trying to sort it all out and pay the other tax liabilities now due on it.

Stamp duty would not have applied to a £30K flat.

RAS

Star99 wrote: »

I do now believe his sole reason for putting it in my name was to avoid paying tax and claim rent tax free.
With regards to the cash, he said he has two other investors, so the three of them purchased the property jointly.

OK when did he explain this?

shop-to-drop

RAS wrote: »

Stamp duty would not have applied to a £30K flat.

OK, I see so not just for first time buyers. That knocks that theory on the head then!

Star99_2

JimmyTheWig wrote: »

Trying to think of a line of "work" which would mean the brother has plenty of cash that he appears to want to invest without the authorities knowing he has it.

Only one comes to mind, I'm afraid.



I disagree. I think the police station is the place that he needs to be right now.
Whether the OP can do that to her brother (should do, after all this grief) is a different question.

I believe he works for the tax office.
And a part of me does feel like reporting him, but I feel bad as he is still my brother.

RAS

HAve you yet found out where this flat is??

Star99_2

gfplux wrote: »

I have reflected on this "strange situation" and I now begin to wonder if it is at all true. How could a grown women agree to such things. How could her husband let her.
Is the original poster a troll?

Unfortunately, it is all true. I wish it wasn't but it is.
I didn't really think about it too much at the time as I trusted my brother.

Star99_2

RAS wrote: »

Regarding the house mum is in, could you and OH and baby not move in there if brother cannot get a mortgage and he move out.

Whether you agree to let mum stay is another matter, but frankly is she "gifted" you half the value I would do that if OH was OK?

OH would not be happy with that at all as would find it uncomfortable living with my mother and/or in her house. (Although it is in my name)

RAS wrote: »

No you cannot do that. You own the house so you are liable for the tax even if he has been taking the income.

Also you are liable if he has failed to meet any of the landlord's responsibilities like Gas certificates and deposit protection. You can be fined pretty hefty sums if he has fouled up (not likely but possible).

Given that the tax deadline is January 31 and that not only do you need to get the return done but you also need to pay the tax by then, he needs to find the money to pay your tax liability by and pay it by January 31. After that the fines start to wrack up.

What if he has been renting for the past two years? What would the tax deadline be for 2011-2012?

JimmyTheWig wrote: »

Why did _you_ make an appointment for your brother to go to the bank?

He was at work and couldn't dial an 0845 number.
We will both be going to the bank together so we can discuss the best way to transfer the mortgage to my brother.

Star99_2

RAS wrote: »

OK when did he explain this?

He told me this before he bought the flat when he was arranging the money to buy it.

RAS wrote: »

HAve you yet found out where this flat is??

No, my brother hasn't been in touch with me since yesterday evening when he rang. I'm wondering if I should ring him and request a copy of the rental agreement. He will definitely know somethings up then as I've never shown any interest in the flat and his dealings with it.

RAS

Star99 wrote: »

He told me this before he bought the flat when he was arranging the money to buy it.



No, my brother hasn't been in touch with me since yesterday evening when he rang. I'm wondering if I should ring him and request a copy of the rental agreement. He will definitely know somethings up then as I've never shown any interest in the flat and his dealings with it.

Just explain that you will not sign a legal document regarding evicting the tenants unless you have also seen proof that you signed the rental agreement.

You and OH are going to have to tackle him regarding the tax liability as soon as possible but get that rental agrement first.

samehat

Star99 wrote: »

And thank you for your concern. When I first read your post earlier, it actually made me cry. I can't believe a complete stranger cares more than my own so called family. A family that I've done so much for like the mug that I am.

And thanks to everybody for all your advice and kind words. I really do appreciate it.

I didn't intend to make you cry. But I do honestly hope that you can get all of this sorted out without having any damage to your future financial situation, especially considering that you are setting up a home of your own with a young family.

I think you have been given a lot of good advice on here. I hope you can find it in yourself to stick to your guns and get this all sorted for once and for all, rather than get sucked in again by people that have shown they know how to take advantage of you.