Wojciech

HMRC Admin 13 - That is exactly what I am asking for, a general advice for the circumstances I described. The General enquiries you linked does not provide answer to my question and the professional I spoke to explained to me, that he cannot confirm 100% as HMRC is the ultimate arbiter. So can you please just confirm that the guideline I linked is correct - which states 'If you keep your shares in a SIP until you dispose of them, you will have no CGT to pay in respect of this disposal.' Clive Smaldon - Thank you for the explanation regarding the interest. With regards to your question, the guideline on HMRC website (https://www.gov.uk/government/publications/employee-share-and-security-schemes-and-capital-gains-tax-hs287-self-assessment-helpsheet/hs287-capital-gains-tax-and-employee-share-schemes-2021) states that the employee shares are exempt from CGT. So that is why I am asking for confirmation. And am struggling to get it. Thanks Wojciech

Thank you. Just to clarify though - I am not talking about husband and wife scenario. I am talking about financially supporting my parents by the rental income. I am looking for ways to do it, without having to pay 80% tax on the income. So in order to utilise this (essentially transferring full / almost full rental income to my parents), do they need to be owners of the property, along with me? Or can I transfer the income from property to them, even if they are not owning the property with me? Also - can you please answer the remaining questions from my previous post. Thanks

Thank you - though I thought that this was one of the ways to contact HMRC and get an explanation of the rules, is it not the case? If not, how can I contact HMRC? The ways I tried thus far: 1 Sending a paper letter - sent one in February this year (on another topic), still have not received a response 2 Called, waited for well over an hour to get connected and when the advisor was going to put me on hold, he apparently hang up by mistake - and never called back 3 Tried using online chat, but never got connected to a real person and the chatbot I spoke to was completely useless How can I get in touch with HMRC, other than the three options above? Thank you

Yes, that is exactly the reason why I am asking. The general enquiries site you linked does not answer my question and based on guideline from HMRC: 'If you keep your shares in a SIP until you dispose of them, you will have no CGT to pay in respect of this disposal.'
That is why I am asking to confirm if this is correct, to make sure I pay the correct tax (in this case none, for employee shares).
Can you please confirm.

Thank you very much for the information. Can I just clarify on HRMC's exact requirements and the next steps myself and my parents would need to follow - in order to avoid potential problems and penalties. My understanding based on what you said and guidelines online is the following - can you please confirm that is correct: 1 Write trust deed (me being legal owner of the property my parents being beneficiary owners), expressing the split of income - I can look up example / template online for this 2 Send a cover letter to HMRC - stating my name, my parent's names, addresses, DoBs and explaining that I am the legal owner and my parents would be the beneficiary owners. Is there anything else I need to write in this letter? 3 Taxation - my parents live in Poland which has double taxation treaty with UK and you stated earlier that UK has first taxation rights on any UK property income - therefore: 3.1 I assume that by default, either my parents or myself on their behalf would need to submit the self-assessment each year. Is that necessary if the rental income for each of them would be below the £12,570 tax free allowance threshold (assuming they have no other income in UK)? They also do not have UTR or any other UK identifier (NINO etc.) - would I need to obtain those for them? 3.2 Does the income need to go to a specific bank account (held in my parent's name or trusts name) or can it go to any account? As they do not have UK residency, getting an account with UK bank might be difficult. Kind regards, Wojciech

Hi, sorry perhaps there is some confusion. I am not asking a financial planning question, I don't need a financial advice from you. I am asking two questions - which should be fully within HMRC's remit: Are landlords really liable to pay approximately 80% tax on their rental income - or am I missing something? I was told that Form 17 can be used to declare a different beneficiary owner of a property (from a legal owner) - as far as I can see, it only contains field for a spouse, not a parent. Which form can I use? Thanks Wojciech

Thank you. However I already asked a professional but they pointed me to HMRC as you are the ultimate decision makers on what I can or cannot claim. Who in HMRC can answer the above questions, if not you on this advisory forum?

Thank you - however when I had a look at Form 17, it would appear that it only allows me to fill a spouse / civil partner for joint ownership of a property. What I need is a form to declare my parent as a beneficiary of the income from the property, while me being the sole owner. What form can I use please? Also - what evidence is required? Is it copy of the written declaration of trust? Thanks

Thank you. The guide however does not say what the interest calculation would be. In my example, the interest would be approximately 1500 per year over 8 years? I am a higher rate tax payer, which I understand has 500 tax free interest per year (and I had no interest income over those 8 years). So suppose I would receive interest payment of approximately £12,000, use the 8x£500 tax free allowance and paid interest of 40% on the £8,000 = £3,200 - is that correct? As for my girlfriend, she would not actually receive a dividend from her employee shares - it would be a disposal of shares, which according to the information should be tax free. Does that need to be declared and / or taxed?

Thank you - but after watching the video, it did not actually answer the question - let's suppose below scenario: Assuming approximately 25,000 annual rental income 15,000 interest payments 1,000 tax free allowance (with no expanses being allowed) Being in Higher tax band of 40% from my employment income So based on that and the fact that I can only claim 20% of my interest payments as expanses (not even counting all the others - service charge, ground rent etc., need to look into those further) Then my calculations (hopefully incorrect) are: Paying to HMRC 40% of (25,000 - (0.2 x 15,000)) = 40% of 22,000 = 8,800 tax. Now I use the 1,000 tax free allowance, but still need to pay 7,800 tax. So in reality, I get 25,000 rental income, pay 15,000 interest to my lender and 7,800 to HMRC, I am left with 2,200 = effectively 78% taxation (not 40%) on rental income. Is that correct?