Rental Income & Tax - expenses and relief

ABBF08291

Dear forum,

- Person A: top tax rate payer, BTL property owner (100% ownership)

- Person B: low tax rate payer, not related to person A, no ownership in property, this person B 'manages' the BTL property

Can person A pay person B an amount for "managing" the property, and then person A treat that amount as an "expense" incurred thereby offsetting his PnL and Tax bill?

Result looking for:
- reduce income and tax burden of person A;
- increase income of person B who would still pay less tax than person A would

anselld

Yes, but the amount would have to be consistent with the actual duties performed by person B, e.g. 10% of rental income.

Also person B should actually do the work and keep the money not just have some contrived arrangement to save tax for A. Person B probably also needs to register as self-employed since property management is a trading activity, not property investment.