georgealder21

Hi HMRC I solely bought a property in 2018 (mortgage free) which I received rental for and duly paid tax on. In 2021 my wife and I set up a limited company to manage this property and this limited company then began receiving the rent. We set up a declaration of trust when we set up the limited company stating “that I herby give permission for the limited company to act as a managing agent for the property and receive all rental income. This is on the understanding the ownership of the property is NOT altered or affected and the limited company is liable for any tax on rental income received “ HMRC have recently questioned this and asked to see my arrangement. Is what I have in place adequate and legal and does not trigger any stamp duty / capital gains issues. Thank you

Good evening HMRC may I get advice. I purchased a property in 2018(no mortgage) I received rental income and paid the relevant tax. In 2021 I set up a ltd company and under legal advice drafted a blind trust stating that I give permission for the limited company to manage the property and receive the rental income. The trust states that the limited company is liable for any tax incurred from receiving these rental payments however the trust does not affect the ownership of the property. Is this suitable for the HMRC? May I add since the limited company has been receiving the rental monies all taxes due are up to date and fully paid