UK property rent question

skillboy

I own a small property that I will rent out at £500 per month.

I am already UK higher rate tax payer.

I want to give this rent to my daughter.

Can I just ask the tenant to transfer the rent into my daughters bank account?

If I give this money to my daughter do I still have to declare it as part of my income or can my daughter claim it as part of hers instead (she is a lower rate tax payer)?

Darksparkle

You own the property, it's your income.

If you give it to your daughter that's your choice but it's still your income.

booksurr

as stated, your property, your income, your tax liability

if you want daughter to get the money she will have to have an entitlement to the rent because she is the property owner or (at least) co owner, and you have given her all / some of your beneficial interest. Such action would be a disposal on your behalf and trigger CGT for you.

Cook_County

The gift might also trigger a charge to SDLT. However, CGT on disposal is charged at a lower rate than IHT on your death. Consequently, a lifetime gift (or a series of gifts to minimise CGT) can be effective at minimising IHT.

skillboy

Thanks for all your feedback.