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So it doesnt matter whose bank account the rental profits go to or who is dealing with the admin in the rental business or whose name is ***** ***** tenancy agreement, the rental profit will still be taxed equally between me & my mum? If rental profits go to her bank account i am not sure how i will be taxed...and I guess her tax rate will be 20% as she doesnt live in the uk? If I sell this flat within 3 yrs I would get PPR no? As I used to live there and only letting it for 3yrs. Thx
Hi I read on hmrc PIM1030 website that in absence of a partnership that joint owners can agree on a different share on the rental profit and loss, it doesnt have to be 50/50? In this case we agreed my mum will pay mortgage and receive rent profits so she should be taxed 100% right? I dont quite understand what will i be taxed on if i dont get the income...?
Thanks just to clarify, if net income is £1,800, interest on mortgage £800 so net profit £1k, even if all mortgages & income go to her account, I will be taxed on £400* say 40% tax rate (since i didnt have to pay 50% of mortgage interest )and she will be taxed £600* 20% basic tax rate?
Thanks, ***** ***** isnt really a tax advantage to have profits to go to her account then?