I now own a 50% share of a property along with my mother. The property is leased out and managed by my mother. I live several hundred miles from the property and play no part in the management of it.
As my mothers need is greater I would like her to have all the income and for her to pay the relevant income tax. Can we do this? Or am I required to accept and declare my half of the income.
Cheers,
Geoff
Bitstring , from the wonderful person Geoff said
Sounds like she needs to charge you a hefty property management fee?? (I assume you'd like to hold on to the 50% asset, just not get the income. If you just want to give her the other 50% of the asset, that's pretty easy).
Can't see any reason why not. Might need to write her a letter to that effect to satisfy the IR and to give her legal permission to let it at her discretion.
I doubt it. If you want more opinions try posting uk.business.accountancy or LandlordZone, link on my webpage
Daytona
Thanks guys... have since found an inland-revenue booklet IR150 which covers this:
"joint owners can agree a different division of profits and losses and so occasionally your share of the profits or losses will be different from your share in the property."
Geoff
lol! - sorry I should've thought of that - it's the bible for this kind of thing.
Daytona
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