BTL Remortgage predicament

pavvers

Yeah, fair enough and thank you for a level-headed response 👍  As I said above, the "gifting" might come to a natural end soon anyway due to the mortgage costing more per month.

I wanted to edit my most recent post but cannot see how to do it so here comes a 3rd hypothetical scenario...

My dad and I elect to split the income 100:0 but the other way around, so I get all of it and he gets none.  Mortgage free again, so now I'm left with £600.  Can I gift any amount of that to my dad?  Would he have any right to ask HMRC if he could get some money out of them because he's realised we've been a bit daft and should have split the income a different way at source?

Yep, just being silly again and ultimately this would still be covered by the points that K_S raised with regard to settlement rules.  Just putting it out there...

MWT

pavvers said:

I wanted to edit my most recent post but cannot see how to do it so here comes a 3rd hypothetical scenario...

The edit option is under the '...' menu in top right of the post.

pavvers said:

I wanted to edit my most recent post but cannot see how to do it so here comes a 3rd hypothetical scenario...

My dad and I elect to split the income 100:0 but the other way around, so I get all of it and he gets none.  Mortgage free again, so now I'm left with £600.  Can I gift any amount of that to my dad?  Would he have any right to ask HMRC if he could get some money out of them because he's realised we've been a bit daft and should have split the income a different way at source?

Yes you can gift it, no he can't reclaim the tax on a gift unless he is a registered charity...

pavvers

MWT said:

You missed option d) ... hand it in to your local Police Station ...

It is funny how often those engaged in some form of possibly questionable activity always claim everyone else is doing it too, when it really isn't the case, in my experience at least, having handed stuff into the Police on more than one occasion.

Yes, that is a viable option and I admit that it didn't even enter my head.  I've always gone with option b myself, but IIRC the most I have ever found has been £1, certainly nothing in note format.

In an effort to cleanse my soul, I would like to add that I found a wallet in the locker room at work sometime last year. I opened it to look for ID but there wasn't any, there was however £30 in cash.  I knew the liklihood was that it belonged to someone on nights and having just started a dayshift, I also knew that if I handed it in to our security team then that would delay the person getting it back. So, I hid it somewhere out of sight and when the nightshift came back in I asked around and found the owner, who was of course very grateful.

I know it shouldn't make a difference, but when it's a personal possession like a wallet, phone, jewellery etc I would always do what I consider to be the "right" thing and either trace it's owner or hand it in somewhere appropriate.  Loose cash found in the street is fair game, but maybe that's just me?

MWT said:

As per the comment from Noitsnotme, if the motivation is the avoidance of tax then it probably isn't worth doing, if he would do it anyway regardless of having received more than his share of the rent then of course it is fine, but would he really... ?  ... that's the problem with tax avoidance schemes, you never really know if it is avoidance or evasion until HMRC get involved...

Duly noted.  My dad (and to give her credit, my mum too!) have given me gifts in the past and I imagine they will continue to do so.  Not always in the form of "cash" - either physically or via a bank transfer.  Recent example being my dad buying me a garden shed.  I don't know where an individual would start with quantifying or proving what was or wasn't a gift or indeed whether it would have been given in different circumstances...

pavvers

MWT said:

The edit option is under the '...' menu in top right of the post.

Yes you can gift it, no he can't reclaim the tax on a gift unless he is a registered charity...

Ah... my status on here has just been upgraded to "forumite" so that option is now available to me - Thank you.

Fair enough!  Everyday is a school day as they say 🙂