Buying to let with daughter

randonneur

This is a request for advice.
I am buying a house to let with cash.
I have a home already so it will be bought by my daughter and a prenuptial agreement if she marries.
I will be the agent as I am a licensed letting agent.
First question is there any cap on how much I can charge as agent. For example all the rent. ?
Note I will be paying tax on my income.

Then I plan to be gifting my three children probably with the rent.

My daughter will own her first house , she lives in Germany and is unlikely to be buying a house to live in in UK.
So the second home stamps will not apply.


To ensure that the other children do not lose out the will will specify that her share is minus the value of the house she owns.

If I can charge full agent fees to the rent value she will not get an income from it but I will and I will pay tax on that.
However if she sends a form declaring the UK income she will benefit from the tax allowance here and pay no tax.
What happens overall when also earning in Germany?

The overall aim is to create a pet of the house and have no extra stamp duty. But to have extra spending money for myself.

Please can you give me advice on my proposal.

It makes me happy to invest my inheritance wisely and even happier to make it work for my children.

Thanks

need_an_answer

If that's your mobile number above ...you might want to edit it out of your post...

This is a public forum and the advice is never to give out personal details

Press edit and removed the required text and then the save button.

davidmcn

randonneur wrote: »

Please can you give me advice on my proposal.

It doesn't work in the way you imagine it does. If you want to become a landlord, pay your tax.

lees80

randonneur wrote: »

This is a request for advice.
I am buying a house to let with cash.
I have a home already so it will be bought by my daughter and a prenuptial agreement if she marries. These two contradict each other - you are buying it but then your daughter is?
I will be the agent as I am a licensed letting agent. - Anything after this statement surely you should already know?
First question is there any cap on how much I can charge as agent. For example all the rent. ?
Note I will be paying tax on my income.

Then I plan to be gifting my three children probably with the rent.

My daughter will own her first house , she lives in Germany and is unlikely to be buying a house to live in in UK.
So the second home stamps will not apply. It will if she buys her own house in Europe


To ensure that the other children do not lose out the will will specify that her share is minus the value of the house she owns.

If I can charge full agent fees to the rent value she will not get an income from it.
However if she sends a form declaring the UK income she will benefit from the tax allowance here and pay no tax.
What happens overall when also earning in Germany?

The overall aim is to create a pet of the house and have no extra stamp duty. But to have extra spending money for myself.- money for you or for the kids as you've already suggested?

Please can you give me advice on my proposal. - No.

It makes me happy to invest my inheritance wisely and even happier to make it work for my children.

Thanks


Regards


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Take your personal info down - there are a few people of the same name and similar area knocking around and one of them is not someone many people will be wanting to help.

sheramber

From advice on another post the SDLT will apply to a non resident who is buying property in the uk and owns a house abroad.

pjcox2005

You may also want to look at the specific rules for non-resident landlords https://www.gov.uk/guidance/paying-tax-on-rent-to-landlords-abroad

Yalpsmol

I'm not sure if I quite understand what your daughter is getting from this?

Yalpsmol

Also, it wont be your decision whether your daughter insists on a pre-nup before marriage or not. If you're gifting her the money to buy a house then it is her house to do with as she pleases (and they are her relationships to make decisions about, too).

theartfullodger

Welcome to MSE:

Apparently some people might say ...

Part of being a patriot is not to fiddle your tax. Or your daughter's.

And what a terrible example/lesson you are giving to your daughter.

Thankfully with the mobile number you kindly provided it's easy to find your name & email - keen cyclist ,explains the id you chose for here. HMRC will perhaps already investigating.. Wonder what else you are fiddling if you think this is OK. Good old Google eh?

But not me, obviously.

davidmcn

Yalpsmol wrote: »

I'm not sure if I quite understand what your daughter is getting from this?

Many of the liabilities of being a landlord and almost none of the benefits, apparently.

lees80

Yalpsmol wrote: »

I'm not sure if I quite understand what your daughter is getting from this?

The daughter will 'own' the house, but the parent benefits from all of the rental income (which would also mean being a landlord and being responsible the associated costs that come with it).

The other expected benefit (read; dodge) is that second home SDLT will be avoided.

Taking the above out of the equation, if I had a licensed letting agent managing a property for me, that couldn't answer some of the questions above, I would be running a mile.