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If you own a share of a property, can you rent the other share?

If I own 40% of a property and someone else owns the other 60%, and I live in the property, can the other person set up a tenancy agreement for me to rent the 60% from them?

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  • Comms69
    Comms69 Posts: 14,229
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    Ed-1 wrote: »
    If I own 40% of a property and someone else owns the other 60%, and I live in the property, can the other person set up a tenancy agreement for me to rent the 60% from them?

    In theory yes.

    But you wouldn’t have to agree; if both parties are private owners then both have the same rights of occupation.
  • Ed-1
    Ed-1 Posts: 3,866
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    Comms69 wrote: »
    In theory yes.

    But you wouldn’t have to agree; if both parties are private owners then both have the same rights of occupation.

    Who is rent legally due to? Just the landlord named on the tenancy agreement or all owners of the property?
  • Comms69
    Comms69 Posts: 14,229
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    Ed-1 wrote: »
    Who is rent legally due to? Just the landlord named on the tenancy agreement or all owners of the property?

    It’s very confusing what you mean.

    Please provide a thorough description on your circumstances.
  • Ed-1
    Ed-1 Posts: 3,866
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    edited 6 August 2018 at 10:19PM
    Comms69 wrote: »
    It!!!8217;s very confusing what you mean.

    Please provide a thorough description on your circumstances.

    Well, tax implications for jointly-owned property - but not by spouses or civil partner are:

    Where you receive income from property in the UK, that income is taxed as part of the profits of your property rental business.

    In a straightforward case where you own a property jointly with another person (for example, friends, business partners, parent and child or brother and sister) and the property is let out, your share of the rental profits or losses will usually be based on the share of the property you own. Unless you agree a different allocation - this is explained further below.

    Example:
    Alice and Jim are friends and invest in a flat together. Alice owns 60% of the property and Jim the remaining 40%.

    The property is let out and in the tax year rental income is £8,400 and allowable expenses £4,600. This results in a profit of £3,800. The profit is shared as follows:

    Alice (60%): £2,280
    Jim (40%): £1,520

    https://www.gov.uk/guidance/income-tax-when-you-rent-out-a-property-case-studies

    But if Jim was the one renting the property (for example Alice may have bought the house originally and Jim is "staircasing" as and when he can afford to buy shares of it from Alice), he isn't due any of the rent as he is renting Alice's share. Alice doesn't live in the property (even though she has a right to) - the pair have agreed a tenancy for Jim to pay Alice for allowing him to live in it by himself.
  • Comms69
    Comms69 Posts: 14,229
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    You know where I said explain YOUR circumstances? How did you translate that to a mediocre lesson on taxation?

    In any case. I’m asking why you ( Jim ) would voluntarily pay rent?

    That aside Alicev would treat it as any other income.

    What I don’t understand is what your second post related to ( hence asking for information about you; not Alice and Jim ) - rent would be due to Alice?...
  • 00ec25
    00ec25 Posts: 9,123
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    Comms69 wrote: »
    You know where I said explain YOUR circumstances? How did you translate that to a mediocre lesson on taxation? .
    take a look at his posting history. There is a clear theme. I have given up replying to his "scenarios"
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