Income from property

What happens if a limited company owns a residential property and the director takes the rental income as his and includes it on self assessment?

Hi
Thank you for your question.
If the limited company owns the property what ownership rights exist for the director to take the rental income.
Please confirm what the share (if any) they limited company and director have arranged if this is the case and how this has been agreed i.e deed or proper. 

The limited company owns the property. What do you mean by ownership rights to enable the director to take the rental income? No arrangements have been made.

Hi,
 

Thank you for your question. Ownership of property comprises :  • legal ownership (TSEM9120)  • beneficial ownership (TSEM9130).  The same person may be both legal owner and beneficial owner of the property, but there can be a separation of the two. The legal owner is the person/s in whose name/s the property is held or registered. The beneficial owner is the person for whose benefit the property is held. It is distinguished from the person in whose name the property is held (the legal owner). The starting point is that the legal owner is presumed to be the beneficial owner unless there is evidence to the contrary. The legal and beneficial ownership of property may be separated by a valid declaration of trust. Further information is available at: TSEM9150 - Ownership and income tax: legal background: ownership: legal and beneficial ownership - separation - HMRC internal manual - GOV.UK (www.gov.uk). Thank you.