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Help with BTL on inherited house

Seenthelight
Posts: 1 Newbie
A few years ago my brother and me inherited our parents house. Due to the poor housing market we decided instead of selling we would rent it out for a year then sell. With the market not changing is now been a number of years.
We both signed an agreement with a letting agent as we now both live away from where the house was. However because my brother earns a lot less than me (I am a 40% taxpayer) I told him to take the income to help him out. He has been doing this and paying tax on it.
I didn't consider anything being a problem with this until I read the thread on BTL shares between couples and wondered if I have to declare any or the letting income even though I didn't get any?
Anyone any ideas?
Thank you
We both signed an agreement with a letting agent as we now both live away from where the house was. However because my brother earns a lot less than me (I am a 40% taxpayer) I told him to take the income to help him out. He has been doing this and paying tax on it.
I didn't consider anything being a problem with this until I read the thread on BTL shares between couples and wondered if I have to declare any or the letting income even though I didn't get any?
Anyone any ideas?
Thank you
0
Comments
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you are OK
people often forget that one of the few places in tax where being married/civil partners rather than being taxed individually still makes a difference in respect of rental income
if you are not married/civil partner than you are free to split the income any way you want, irrespective of your legal ownership shares
if you are married then the rules are different and splitting the income involves declarations of trust, and Form 17 if tenants in common or if joint tenants then you can only split 50/500
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