UK property rent question

skillboy · 12 March 2017 at 6:22AM

I own a small property that I will rent out at £500 per month.

I am already UK higher rate tax payer.

I want to give this rent to my daughter.

Can I just ask the tenant to transfer the rent into my daughters bank account?

If I give this money to my daughter do I still have to declare it as part of my income or can my daughter claim it as part of hers instead (she is a lower rate tax payer)?

Darksparkle · 12 March 2017 at 7:52AM

You own the property, it's your income.

If you give it to your daughter that's your choice but it's still your income.

booksurr · 12 March 2017 at 9:26AM

as stated, your property, your income, your tax liability

if you want daughter to get the money she will have to have an entitlement to the rent because she is the property owner or (at least) co owner, and you have given her all / some of your beneficial interest. Such action would be a disposal on your behalf and trigger CGT for you.

Cook_County · 12 March 2017 at 12:16PM

The gift might also trigger a charge to SDLT. However, CGT on disposal is charged at a lower rate than IHT on your death. Consequently, a lifetime gift (or a series of gifts to minimise CGT) can be effective at minimising IHT.

skillboy · 13 March 2017 at 3:06AM

Thanks for all your feedback.

UK property rent question

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