Can non-owner be landlord, tax implications etc

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

    Can non-owner be landlord, tax implications etc

    Hi All,

    Not sure if this is the right section or not.

    My partner is going to be renting out her property, which is fully owned in her name. My question is, can I be the landlord named on the tenancy agreement, with payment being sent electronically in my name to our joint account? But still having her liable for the tax on that income?

    I suppose the only reason for doing this, is to try and remove my partners identification from the actual tenancy agreement, so they deal directly with me. Thus preventing them from obtaining her name and linking it to her old address in an attempt to commit ID Fraud. But without passing on any tax liabilities directly to myself.

    Is this possible and would it even work/prevent possible ID theft or could they still figure it out if any old post got through the net?

    Thanks

    #2
    So you'd prefer T to sue you (rather than the owner)?
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


      #3
      I suppose, if they needed to, then the answer would be yes.

      Other than me being liable to them as a landlord (and having defend against potential litigation) can the above situation work with regards to tax (i.e. my partner still remaining resposonsible) and would it remove any chance of ID fraud?

      I'm basically the one making sure we comply with our legal obligations, she isn't geting involved.

      Forgot to mention, not sure if this matters, but we are not yet married.

      Comment


        #4
        If it is fully owned in her name then the tax liability should continue to be hers.


        Are you married/not?

        Comment


          #5
          Not married yet, so she will be responsible for filling in the tax return, but I can still be named on the AST as landlord and receive payment in my name into our joint account?

          Comment


            #6
            She will be responsible for filling in the tax return even if you do marry.

            I suppose I have a slight concern with the use of a joint bank account. Normally taxable income is viewed as belonging to the owner of the item generating the income. Exceptionally, if the income ends up with somebody else, then it could potentially be viewed as being the income of that other party.

            Now if your P wanted to rent it out, take the money, and then give it to you (after she'd paid tax) that's absolutely fine.

            Why not pay the money into her bank account? In fact, why not stop all this faffing and put her name on the tenancy agreement. It'll cost you more to add your name (as apparent landlord, but not owner) to the insurance.

            Comment


              #7
              It has to be asked: OP, what will you do if the relationship fails?
              You'l be stuck as L with obligations for a property that you do not own.
              JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
              1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
              2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
              3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
              4. *- Contact info: click on my name (blue-highlight link).

              Comment


                #8
                Well one of my main reasons for wanting to do it that way was to prevent future tenants from having her name and previous address as I had read about various types of ID fraud, so only wanted to check if was possible and that I wouldn't be liable for tax.

                I suppose it is getting a bit dodgey by having income being paid in my name but actually belonging to her. Ultimately it would be "joint" income and going towards paying other household bills etc which is why we would want it paying into a joint account.

                I wasn't aware that doing this would add to the cost of insurance either, so thats something to think about also.

                I might just be easier setting it up in her own name then.

                Comment


                  #9
                  Are you in Scotland, as here we have to register as the LL as the true owner of the property. Regards Peter

                  Comment


                    #10
                    In England, so I guess that means she needs to be the landlord then.

                    Comment

                    Latest Activity

                    Collapse

                    • Reply to Will they raise taxes again?
                      by Gordon999
                      The Daily Mail reported on 29 Oct 2021 the 1.25 p increase for social care levy commencing in 2022 , will take £16 Bil from our pockets. The freezing of personal allowance for income tax at £12570 until 2026 will take £19 Bill by 2025/2026.
                      ...
                      02-12-2021, 11:18 AM
                    • Will they raise taxes again?
                      by JK0
                      My accountant just finished my 2020/21 tax return, and my income is half of the previous year. I did not think it would be quite that bad. (Half my tenants moved out, and I had a job to replace them. Plus had to get fourteen EICR's!)

                      I'm guessing you guys are in a similar boat. Never mind...
                      27-11-2021, 20:20 PM
                    • Reply to Will they raise taxes again?
                      by Gordon999
                      Corporation tax for large companies ( over £250K profit ) will be raised from 19% to 25% rate commencing from April 2023.
                      30-11-2021, 21:35 PM
                    • Reply to Corporation Tax
                      by Gordon999
                      There seems to be 2 problems ( I am not an accountant ) :

                      (1.) The company has to pay £30,000 tax due to revaluation of property asset increased higher by £150,000 ( estimated). Does it have the cash in its bank account to pay ?

                      ( 2) husband owns one third interest of property...
                      30-11-2021, 14:09 PM
                    • Reply to Will they raise taxes again?
                      by theartfullodger
                      Taxes bound to go up, huge amounts to pay for Covid & BR*X*it. Death & taxes, death & taxes.

                      Holding off working out my position, wishing to remain cheerful for Christmas.

                      Best wishes to all...
                      28-11-2021, 10:45 AM
                    • Reply to Will they raise taxes again?
                      by Neelix
                      ^^ please don’t take this the wrong way but £10 k down on what turnover or number of properties?

                      i’ve done a lot of EICRs and remedial work over the last 18 months and a lot of it was because properties hadn’t been inspected and some were just dangerous....
                      28-11-2021, 10:29 AM
                    • Reply to Will they raise taxes again?
                      by jpkeates
                      I'm about £10k down and it's mostly electrical work.

                      I can't see this government putting up taxes anymore before the next election, although there's nothing to say that they won't figure out how to tax landlords more specifically - there's few votes lost there.

                      My candidate...
                      28-11-2021, 10:07 AM
                    • Reply to Will they raise taxes again?
                      by Neelix
                      That's a lots of unsatisfactory EICR's and remedial work - so not annual costs!...
                      28-11-2021, 09:00 AM
                    • Reply to Will they raise taxes again?
                      by Neelix
                      Wow.

                      So that must be lots of unsatisfactory reports and lots of remedial work.

                      so not annual Costa...
                      28-11-2021, 08:31 AM
                    • Reply to Will they raise taxes again?
                      by jpucng62
                      Clearly you were a bit behind on your electrical work!...
                      28-11-2021, 06:58 AM
                    Working...
                    X