Question on non-resident landlord scheme

[Tax Accountant]

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.

[ginolard]

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.

[Tax Accountant]

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.

[Poppy]

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.

[ginolard]

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?

[Tax Accountant]

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.

[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?