HMRC Admin 20 Response

Hi,
A self assessment tax return is used to declare your world-wide income and capital gains, that arose in a tax year.  
If your sales from Vinted are trading income, you would declare this as a separate source self employment on your tax return, as you will have exceed the trading income
allowance of £1,000 with your delivery business.
Please see guidance re selling on line When you may need to pay tax for selling goods or services online.
Thank you.

Hi,
You would have to dispose of the property first.  
Only after the disposal can a capital gains laibility be calculated.
There is a calculator at Tax when you sell property, to help work out your gain.  
It leads on to the online capital gains service, where you can report and pay any tax due, within 60 days of the completion date.
Thank you.

Hi,
Yes you would require a deed of assignment or declaration of trust as evidence for the Form 17 you need to submit as you are both owners of the property.
Please see guidance
TSEM9870 - Property held jointly by married couples or civil partners: Form 17 rule - action on receipt of form 17
and
TSEM9520 - Ownership and income tax: express trusts - written declaration.
HMRC cannot advise on the requirement to inform your mortgage provider, please check with them directly.
Thank you.

Hi,
HMRC have no preference on the document used however, more guidance on the requirements can be located at  TSEM9520 - Ownership and income tax: express trusts - written declaration
HMRC  cannot advise you whether or not to use a solicitor, however, the simple requirement for the document are set out in the guidance provided.
Please keep this document in your records, although HMRC may not require it immediately, it may be requested at a later date. 
As the property is not held in joint names a Form 17 is not required. 
HMRC cannot provide guidance on where the funds are kept, this is a forum for general queries. 
Your wife will include the expenses in the proportion of the share she owns in the property, if this is 100%, she would include 100% share of the expenses. 
Most types of trusts giving an interest in property to somebody who is not the legal owner now need to be registered with HMRC via the Trust Registration Service.
You can find guidance on the registration requirements and how to register here Register a trust as a trustee.
There is also more information about what type of trusts need to be registered at TRSM23050 - Types of trust that need to be registered: contents: excluded express trusts: contents: property ownership.
Thank you.

Hi,
As you have stated that you solely own the property the starting point is that 'whoever has beneficial ownership of the property has beneficial ownership of the income.
Please refer to the guidance located at TSEM9160 - Ownership and income tax: legal background: ownership - income follows property
As the property is not held 'in joint names' then you would not have to make a formal Form 17 election.
Please therefore refer to the following guidance in respect of making a declaration of trust (to declare yours and your husband’s beneficial interests in the property), this would then enable you to transfer all/part of the rental income to your husband. TSEM9520 - Ownership and income tax: express trusts - written declaration.
You will not be required to submit the declaration to HMRC, however you must keep a copy for your records as this may be requested from you at a later date.
Thank you.

Hi,
If a tax return is required, you would declare the losses in the capital gain section of the online return or SA108 if on paper (Self Assessment tax return formss).  
You will need to attach supporting evidence of the losses.  
If a tax return is not required you can report the losses in writing and include supporting evidence.  
You cannot claim losses that you have not declared to HMRC.  
The losses can be carried forward and set against a future gain.
Thank you.

Hi Rich Lad,
Regarding the split of expenses, please see guidance available at PIM1030 - Introduction: jointly owned property & partnerships which advises the following- However,
where the joint owners are husband and wife, or civil partners, profits and losses are treated as arising to them in equal shares unless:
•    both entitlement to the income and the property are in unequal shares, and
•    both spouses, or civil partners, must inform HMRC that their share of profits and losses is to match the share each holds in the property.
Therefore, the share of expenses would match your wife’s share in the property.
There is no guidance to indicate the bills for the property business must be in your wife’s name.
Please see guidance-Work out your rental income when you let property Capital expenditure and PIM2030 - Deductions: repairs: is it capital?  the expenses must not
be capital in nature if you wish to claim them as an expense.
Examples of how to work out Income Tax when you rent out a propertys has good examples of maintenance and repair costs too. 
Thank you.
 

Hi,
Yes.  
It does not matter whether the dividend pay out in cash or re-invest in more shares, the dividend still arises and should be included in a self assessment tax return on
supplementary page SA106, where a foreign tax credit can be claimed.  
Article 10 of the Luxembourg tax treaty (Luxembourg: tax treaties) allows for a foreign tax credit of up to 15% of the foreign tax paid.
Thank you.

Hi,
Possibly, yes, as you have rented out the property and private residence relief will not cover this period.  
If you gift the property to your father, you would need to obtain the market value of the property at the time of gifting and convert the value to pounds sterling.  
You will also need to do the same for the value at which you acquired the property.  
Helpsheet HS283 (HS283 Private Residence Relief (2024)) will help you work out how much private residence relief you can claim.  
There is a capital gains calculator (Tax when you sell property) to help you work out the gain.  
It should be reported in a self assessment tax returns on supplementary page SA108.  
If you had to pay capital gains tax in India, you can claim a credit for this in SA106.
Thank you.

Hi,
The business remains open and running at a loss.  
Those losses do not qualify as a deduction from capital gains, as they are trading losses and not capital gains losses.
Thank you.