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  • Income From Property - Can I transfer to my parents and they pay tax for the rental income

    Dear Sir/Madam, Scenario 1 - A property owned by the mother , her son and her daughter. The rental property was given to the mother in full. Given the mother is the full beneficiary of the income, can she declared the whole rental income in her tax return? Scenario 2 - The child owns the rental property and give all the rental income to her parents. Can her parents declared the rental income in their tax return? or the rental income follows the owndership of the property? Questions: (1) Do they need to make a formal Form 17 Election? but they are not spouse or in civil partnership (2) Someone mentioned in one of the thread that a declaration of trust needs to be done for this? (3) If this is the case is " Declaration Of Trust" is a type of trust and a trust tax return need to be filed? (4) Is this a written declaration which the beneficiary declared the income under his/her own tax return?
  • RE: Rental income transfer to my wife

    Dear HMRC, With reference to your comment of "making a declaration of trust", is this a written declaration, i.e a simple written document, which the beneficiary of the rental income can declare the rental income under her own self assessment return instead of her husband's who is the owner of the property? Also is " Declaration Of Trust" a formal process of setting up a trust, having the property/asset to be transferred into the trust and A Trust return will need to be submitted? If this does not required a formal trust to be set up, can this also be applicable for a property owned by son or daughter, but transfer all the rental income to his/her parents, then parents will delcare the rental income under their self assessment return?
  • How to Value Overseas Property for CGT Purposes

    Under CGT Act 1992, A person shall be chargeable to capital gains tax in respect of the chargeable gains accruing to him in a year of assessment during any part of which he is resident in the UK or during which he is ordinary resident in the UK. Assuming this person is originally from Hong Kong and left Hong Kong on 01.08.2021 and become a resident in the UK when he arrived in the UK on 02.08.2021. He has a property in Hong Kong which has not been sold when he left on 01.08.2021. the property is then sold on 31.05.2022. For Capital gains tax calculation, can the value of the property at 01.08.2021 be used as the cost of the property, because based on the rules, the ONLY gains accrued from 02.08.2021 to 31.05.2022 should be subjected to UK Capital gains tax. Or we have to use the original cost of the property to work out the total capital gains and apportioned the gains in accordance to the period he is a UK tax resident , i.e. 10 months, for capital gains tax purposes?
  • Does An French Resident receive a UK Personal Allowance

    Can a non resident landlord holding Chinese passport and Green card in France receives UK personal allowance on his rental income for his UK rented property