Property income allowance

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    Property income allowance

    I have two properties, one rented to a private tenant and another industrial property I rent to a company I own.

    I note in:
    https://www.gov.uk/guidance/tax-free...trading-income

    It says:
    You cannot use the allowances in a tax year, if you have any trade or property income from:
    • a company you or someone connected to you owns or controls
    It feels a little unfortunate!

    Is this a blanket rule that scuppers this allowance?

    #2
    Are you getting annual income of less than £1000 from each of your properties ?

    Comment


      #3
      I get more than £1,000 from each property.

      Comment


        #4
        Originally posted by Mikexx View Post
        I get more than £1,000 from each property.
        So these allowances are not available to you anyway.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment

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        • Reversing gift
          by vik2001
          Is there a way of reversing a gift of a property given as joint tenants. I want to remove my name on a house that i share with my mother. Its our only main resendential property. I also want to avoid being caught by GROB...
          24-02-2020, 20:22 PM
        • Reply to Reversing gift
          by vik2001
          Ahh yeah got it. As the earlier gift fails does another 7 year PET start again if she buys the share back as cash....
          25-02-2020, 18:12 PM
        • Reply to Reversing gift
          by jpkeates
          Joint tenants don't own anything 50:50, they both own the entire property.
          So I don't think that the gift is part of the property.

          Tenants in common would be different.

          But this isn't something I am particularly confident about.
          25-02-2020, 18:03 PM
        • Reply to Reversing gift
          by AndrewDod
          The earlier gift from your Mom to you fails (as a PET from her) because you are giving it back .........
          25-02-2020, 17:53 PM
        • Reply to Reversing gift
          by vik2001
          Hi jp
          Why does the gift fail? As we have it as joint tenants 50/50. We wasnt trying to remove it from her whole estate.
          Hmrc site says if you gift part of property and all owners live together and share bills expenses then a market rent rate isnt required. So the gift hopefully should be...
          25-02-2020, 17:25 PM
        • Reply to Reversing gift
          by jpkeates
          The gift from your mother to you fails as a gift for tax purposes.
          The property hasn't left your mother's estate as far as I can tell.

          If you were to die, it would be a slight complication, but your executor should be able to sort it out (you might want to leave a note somewhere explaining...
          25-02-2020, 16:51 PM
        • Reply to Reversing gift
          by vik2001
          The property is worth 410k. It has been our only main resendential property. There is no mortgage.

          Was the transfer of the gift genuine. Because i read under s102b it needs to be a undivided share for my mother to live there else its a grob. Or being joint tenants it doesnt matter? Point...
          25-02-2020, 15:36 PM
        • Reply to Reversing gift
          by AndrewDod
          Well in that case

          a) CGT will not be payable on the reverse transfer providing the house has so far been your only home in the time you had a half

          b) SDLT will not be payable on the reverse transfer provided it is i) a gift transfer and no money changes hands AND ii) there...
          25-02-2020, 14:49 PM
        • Reply to Reversing gift
          by jpkeates
          How much is the property worth?...
          25-02-2020, 13:39 PM
        • Reply to Reversing gift
          by vik2001
          Not worried about sdlt. I just dont wish to have 2 properties. I also want to protect my mum if i was to pass away first....
          25-02-2020, 12:55 PM
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