gw01

Sorry, adding on my previous questions - I would like to confirm if the transfer of beneficiary ownership will have any implications on the selling of the property in the future? If my mother is the 100% beneficiary owner of the property I own, will this give rise to implications on capital gain tax, inheritance tax, etc. in the future sales of this property? Are we allowed to amend the agreed share anytime in the future (for tax planning purposes)? I really appreciate your clarification and professional advice. We would like to have more awareness and reassurance before we proceed safely. Thank you. Kind Regards G

Hi Admin 17, Thanks so much for your prompt reply. I would appreciate if you could help to clarify a few more things for me. 1. If I transfer beneficiary interest (i.e. rental income) to my mother, can she file in paper-formed self-assessment for her tax declaration to HMRC ? Or is it mandatory for her to be registered under the non-resident landlords scheme and instruct letting agent to deduct tax from rental income received? 2. Can we amend the share of beneficiary interests between me (the owner) and my mother (the intended beneficiary) in the future if any circumstances change? Should I inform HMRC about any changes in share? 3. Shall I send a copy of the trust declaration document to HMRC apart from registering a trust ? Again, thank you so much for your assistance and clarification. I look forward to hearing back from you. Kind Regards Gloria

Hi HMRC team, Hope you are well. I am a UK resident under a working visa and I own a property in my sole name. This property is currently being let and I have been receiving rental income alongside my salary which in total exceeds the high tax rate band. My parents also own a UK property (50:50 share) and this property is not being let and receive no rental income. My parents are not UK residents and they live abroad. I am aware under TSEM9520 (https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9520), I can transfer the beneficiary interest (i.e. rental income) to the intended person with a written declaration as an express trust. I have completed a declaration of trust detailing the desired share of beneficiary interests between me (the owner) and my mother (the intended beneficiary). I am also in the process of registering a trust for this declaration. However, given that my mother owns a UK property but she is not a UK resident, I would like to confirm here that the procedure I have been following is correct. Please let me know if the above is permitted by HMRC. I appreciate your comments and guidance very much. Kind Regards Gloria