HMRC Admin 2

Hi,

You can find guidance here:

PIM1030 - Introduction: jointly owned property & partnerships

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Hi,

1. No, it is not that type of trust.
2. No, form 17 can only be used if you are married or in a civil partnership.
3. If you want to split the property income between you and your partner, you will need to transfer the legal ownership first. The share that you declare the rental property in does not have to match the actual ownership share. PIM1030 does allow the share of the rental profits to be split differently from the share of the actual ownership. "Where there is no partnership the share of any profit or loss arising from jointly owned property will normally be the same as the share owned in the property being let.  But joint owners can agree a different division of profits and losses and so occasionally the share of the profits or losses will be different from the share in the property.  The share for tax purposes must be the same as the share actually agreed”.  
4. Yes, it is an allowance due to each individual, but you cannot claim your partners £1,000 if they have not used all or some of it.
5. Yes, if your choose that method, expenses must match your relative share of the property.
6. Yes, if you own a property jointly with others you are each eligible for the £1,000 allowance against your own share of the gross rental income.  You cannot however, deduct more than the amount of your rental income and create a loss.
7. Capital gains is based on the share that you legally own. Any rental expenses cannot be deducted as an expense for capital gains. Capital improvements to your property such as building an extension onto the rented property can be claimed as a deduction.

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Hi,

Yes, where a rental business consists of letting property it will normally cease when the taxpayer disposes of the last of the properties they are renting out or alternatively they begin to use all the properties for a non-business purpose.  

You can find guidance here:

PIM2510 - Beginning and end of a rental business: cessation

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Hi,

You can find guidance here:

Tax relief for residential landlords: how it's worked out
PIM2105 - Deductions: main types of expense: fees for loan finance and similar items

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Hi,

Rental income can be transferred to a family member other than a spouse, but we would expect that the share of the rental income matched the share of the legal ownership. If you transferred 30% to your son, then we would expect that your son declared 30% of the rental profits.  

PIM1030 does allow the share of the rental profits to be split differently from the share of the actual ownership. Where there is no partnership the share of any profit or loss arising from jointly owned property will normally be the same as the share owned in the property being let.  But joint owners can agree a different division of profits and losses and so occasionally the share of the profits or losses will be different from the share in the property.  The share for tax purposes must be the same as the share actually agreed.  

PIM1030 - Introduction: jointly owned property & partnerships

Thank you.

Hi,

Sorry we are unable to answer this question as there are other factors which need to be taken into consideration such as the highest rate of Income Tax you pay, any other sources of income you may receive in the UK, as well as if you are entitled to the UK personal allowance which would determine any tax liabilities.

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Hi,

In terms of making repairs to the property in order to bring it up to the standard of being able to rent out to tenants, expenses incurred such as painting and decorating would be classed as revenue costs. 

PIM2025 - Deductions: repairs: overview

If the replacement of the kitchen is on a like for like basis and works the same way as it previously did, then this may also be claimed as an allowable expense.

PIM2030 - Deductions: repairs: is it capital?

As the property is split on a 50/50 basis, although allowable, we would expect that any expenses incurred should be reflected in the same way as rental income has been received, 100% for the duration of time until costs are reimbursed.

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Hi,

Roof repairs are viewed as a repair to the house, rather than replacement of a separate asset, unless there is another aspect giving capital improvement, such as work carried out to create an attic room, an enhancement which will increase the value of the property.
 
If any of the costs (whether they are relievable against capital or income), are met by an insurance pay out, you can claim only the net amount not covered by the insurance.

Capital improvement costs that are disallowed for a property will usually receive relief against Capital Gains Tax when it comes to selling your property. 

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Hi,

Deeds of trust are available in Scotland but should not be confused which trust deeds which are a  separate matter.  

You can use a deed of trust to change the beneficial ownership of the property and the ownership of the property and any income arising from it to a share other than 50:50.  

A deed of trust is a legal document not just for Income Tax purposes. You would be changing the actual ownership of the property into the shares shown on the deed of trust for all legal purposes.

Thank you.

Hi,

You cannot use HMRC’s online services to tell them about your income if you’re non-resident. Instead, you must do one of the following:

• fill in a Self Assessment tax return and an SA109 form and send by post
• use commercial Self Assessment software that supports SA109 reporting (this may appear as a ‘residence, remittance basis etc’ section)
• get a tax professional to report your UK income for you

Tax on your UK income if you live abroad

Thank you.