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Declaration of trust to someone not on deeds

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Comments

  • Can this be done even if the property is not in a limited business 

    I'm not sure what you are asking about, as far as I was aware you would be letting the property as it's owner.

    Nothing you said suggested you would be transferring ownership of the property to a limited company.
    What I mean is the property is in my personal name not a limited company so how would
    I Employee my father and then set up PAYE and then claim
    back the cost 
  • Bookworm105
    Bookworm105 Posts: 2,015 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 10 January 2025 at 7:59PM
    Can this be done even if the property is not in a limited business 

    I'm not sure what you are asking about, as far as I was aware you would be letting the property as it's owner.

    Nothing you said suggested you would be transferring ownership of the property to a limited company.
    What I mean is the property is in my personal name not a limited company so how would
    I Employee my father and then set up PAYE and then claim
    back the cost 
    you would need to operate payroll software and make a monthly payroll submission to HMRC showing the amounts paid to your father,. You may need to pay employer NOI depending on the amounts involved but crucially, as mentioned in a previous post the amount paid must be realistic for the level of work done

    It would be impossible to claim 100% of the rent received as an expense deduction against your own tax on the basis you had paid 100% of that income as a "fee" to your father for being your agent. That would not meet the commerciality test as per the PIM2010 link previously given

    as your father also operates his own property portfolio, the size of his fee would need to reflect that managing your one property cannot be anything other than a small % of his overall time. If his charge is "realistic" then you could claim that as an expense deduction against your own rental profits, but there is no way that charge would completely absorb your entire profit as that would fall foul of the avoidance/settlements legislation also previously linked.
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