Let property disclosure

74jax

If you and your daughter purchased this property is it owned tenants in common or joint tenants? 

EDIT - your other thread says she's 20 but you bought the property just in your name with her inheritance.  You really should only have 1 thread running. 

MSE_ForumTeam5

We've merged the two threads into this one.

THEFIZZ

Sorry I wasn’t sure where to post, thanks for merging. 

THEFIZZ

The property is my name. Everything is in my name. 

Jeremy535897

THEFIZZ said:

The property is my name. Everything is in my name. 

It may be in your name, but if you use a child's money to buy investment property, you would normally hold that property (or the relevant share of it) as trustee for the child. That includes income arising from it. That is why I suggested you speak to a solicitor to clarify the situation.

Robert_McGeddon

Jeremy535897 said:

THEFIZZ said:

The property is my name. Everything is in my name. 

It may be in your name, but if you use a child's money to buy investment property, you would normally hold that property (or the relevant share of it) as trustee for the child. That includes income arising from it. That is why I suggested you speak to a solicitor to clarify the situation.

What Jeremy said.  There's a distinction between legal ownership (what's registered at Land Registry) and beneficial ownership (who benefits financially from the ownership). If your daughter is a beneficial owner as well as you then part of the income is hers to declare for tax. As she's a student then quite possibly she'll have no tax to pay. This reduces your income (and therefore tax) across all years to date.

There may also be a implication for Inheritance Tax. If it is the aim for her to own the property eventually then recording joint legal ownership now may be a good idea.

I echo Jeremy's thought of speaking to a solicitor.

Jeremy535897

Robert_McGeddon said:

Jeremy535897 said:

THEFIZZ said:

The property is my name. Everything is in my name. 

It may be in your name, but if you use a child's money to buy investment property, you would normally hold that property (or the relevant share of it) as trustee for the child. That includes income arising from it. That is why I suggested you speak to a solicitor to clarify the situation.

What Jeremy said.  There's a distinction between legal ownership (what's registered at Land Registry) and beneficial ownership (who benefits financially from the ownership). If your daughter is a beneficial owner as well as you then part of the income is hers to declare for tax. As she's a student then quite possibly she'll have no tax to pay. This reduces your income (and therefore tax) across all years to date.

There may also be a implication for Inheritance Tax. If it is the aim for her to own the property eventually then recording joint legal ownership now may be a good idea.

I echo Jeremy's thought of speaking to a solicitor.

I also mentioned the issue of student grants, as income belonging to the student may be more likely to affect this than if the income is the parent's (it will depend on all the facts). There can also be stamp duty issues and impact on incentives for first time buyers.