Question on non-resident landlord scheme

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Question on non-resident landlord scheme

    Ok here's the deal. The girlfriend and I are thinking of buying a UK property to rent out. We're both living outside the UK. She's never paid UK tax and never will whereas I have paid UK tax in the past.

    If she's the sole recipient of the rental income, is she liable for UK tax? I've looked at the Non-Resident landlord scheme and it seems as though she should be exempt.

    Also, can I have my name on the deeds yet not be declared on the mortgage thereby being somewhat hidden from the tax authorities?

    #2
    Originally posted by ginolard
    Ok here's the deal. The girlfriend and I are thinking of buying a UK property to rent out. We're both living outside the UK. She's never paid UK tax and never will whereas I have paid UK tax in the past.

    If she's the sole recipient of the rental income, is she liable for UK tax? I've looked at the Non-Resident landlord scheme and it seems as though she should be exempt.

    Also, can I have my name on the deeds yet not be declared on the mortgage thereby being somewhat hidden from the tax authorities?
    I would not recommend anyone to hide properties or income therefrom from the tax authorities.
    Private advice is available for a fee by sending a private message.

    Comment


      #3
      I wasn't advocating or asking for advice on tax evasion. I want to know what determines tax liability for house ownership. If my name is on the deeds but the mortgage is solely in my partner's name, how does the IRS view this? Am I liable for any sort of tax or is the liability solely my partner's?

      Comment


        #4
        Originally posted by ginolard
        Also, can I have my name on the deeds yet not be declared on the mortgage thereby being somewhat hidden from the tax authorities?
        You are describing tax evasion. Ignorance is no defence!

        No mortgage lender is going to lend you money secured to a property when you don't actually own it!

        I think you should re-phrase your question entirely.

        Comment


          #5
          Originally posted by Poppy
          You are describing tax evasion. Ignorance is no defence!

          No mortgage lender is going to lend you money secured to a property when you don't actually own it!

          I think you should re-phrase your question entirely.
          Poppy, thank you.

          Ginolard, Property ownership is determined in the main on the basis of names appearing on the deeds, unless you are a nominee only, ie holding on behalf of another beneficial owner.

          As Poppy has stated, all lenders will insist on all names on the deeds to appear on a mortgage.
          Private advice is available for a fee by sending a private message.

          Comment


            #6
            Poppy, thank you.

            Ginolard, Property ownership is determined in the main on the basis of names appearing on the deeds, unless you are a nominee only, ie holding on behalf of another beneficial owner.

            As Poppy has stated, all lenders will insist on all names on the deeds to appear on a mortgage.
            Thank you for the clear and concise answer. Take note Poppy, this is how you answer a question.

            Having never owned a house in the UK I had no idea what the lenders/IRS insisted on. Now I just have to decide whether or not to have my name on the mortgage despite me putting money into the property.

            Comment


              #7
              Originally posted by ginolard
              Thank you for the clear and concise answer. Take note Poppy, this is how you answer a question.

              Having never owned a house in the UK I had no idea what the lenders/IRS insisted on. Now I just have to decide whether or not to have my name on the mortgage despite me putting money into the property.
              Ginolard, I don't think your swipe at Poppy is either warranted or justified. As I see it, he did respond to you concisely and correctly. All querists should bear in mind that respondants are giving their time and advice free of charge. A thank you is at least in order to every respondent but if you cannot manage this, please don't tell then off.

              As far as your query is concerned, I must make it clear that if you have your name on the Title Deeds, all lenders will insist on your name to appear on the mortgage as well. Therefore, if you don't want your name on the mortgage, then you should also not have your name on the Title Deeds.

              By not having your name on the Title Deeds will normally mean that you do not own any share in the property at all.

              If you want to own a share of the property but do not wish your name to appear on the Title Deeds, you should speak to your solicitor and ask him to explain to you about drawing up a Trust Deed. In this case you are still responsible for declaring your share of the property and any income to the Inland Revenue.
              Private advice is available for a fee by sending a private message.

              Comment

              Latest Activity

              Collapse

              • Giving/Gifting House to Kids
                by Tony-Edwards
                Elderly parents in early 80s, one in not so good health.

                Lived in the same home (no mortgage etc) for 50+ years - now worth approx £180,000 - £200,000 and they have minimal savings.

                Looking ahead, if one has to go into care (or council provided home care) I understand there...
                11-08-2022, 11:12 AM
              • Reply to Giving/Gifting House to Kids
                by Neelix
                Not on the attack, but you seem to be evasive...
                12-08-2022, 22:06 PM
              • Reply to Giving/Gifting House to Kids
                by jpucng62
                If they are left with a house bought 50 years ago and nothing else it certainly hasn't been a financially productive life has it? Either they have earned very little or spent quite a lot. Seems a bit odd to then think there would be anything left for the kids after either scenario....
                12-08-2022, 16:55 PM
              • Reply to Giving/Gifting House to Kids
                by Tony-Edwards
                Ha-Ha don't try and deflect it back to me.

                I posted a scenario with info to ask for peoples views - yet you chose to go on the attack lol...
                12-08-2022, 15:25 PM
              • Reply to Giving/Gifting House to Kids
                by gnvqsos
                The house is being exchanged for the provision of care .Why should the family inherit the house, benefit from a windfall, and expect others to fund their parental care? The family could fund the care and then house could be inherited as and when the parents pass on.. There is also equity release as...
                12-08-2022, 14:15 PM
              • Reply to Giving/Gifting House to Kids
                by Neelix
                Then why are you getting involved?...
                12-08-2022, 13:58 PM
              • Reply to Giving/Gifting House to Kids
                by Tony-Edwards
                Ah how sweet - and clearly you CANNOT READ !!!!!

                As previously stated - quite clearly I thought - " (BTW they're not my parents or kids) "...
                12-08-2022, 13:37 PM
              • Reply to Giving/Gifting House to Kids
                by Hollywood
                I'm not even sure the £86000 lifetime limit has come into being yet. I also think the care home fees have to have the personal care cost element removed.
                12-08-2022, 12:48 PM
              • Reply to Giving/Gifting House to Kids
                by jpucng62
                Two points:

                1. Why should the tax payer pick up the bill for the parents care if they have assets? I really don't understand this point of view.

                2. I would rather pay for my care and get a choice than rely on the Council & get possible a worse standard of care.
                12-08-2022, 09:53 AM
              • Reply to Giving/Gifting House to Kids
                by royw
                I'm not quite quite sure why you think they are being robbed? They have assets so can afford to pay for themselves. I would consider the council tax payers - many of whom can only dream of owning their own home - to have been robbed if they have to pay for it.
                Totally agree about those who could...
                11-08-2022, 22:45 PM
              Working...
              X