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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My husband and I own a house which we have started to

Resolved Question:

Hi
My husband and I own a house which we have started to rent out from January 2015. We would like to put the money from the rental income into an account for our 3 children. Do I still need to do a tax return and how to I show that I am not receiving the income. Many thanks.
Chaz
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Can you tell me how old your children are please.
Customer: replied 2 years ago.

20,17 and 16

Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer.
Customer: replied 2 years ago.

Thank you

Expert:  TonyTax replied 2 years ago.

Hi again.

The rental income will be split between you and your husband on a 50:50 basis for tax purposes unless it is actually owned in proportions other than 50:50 and you inform HMRC by completing and submitting a form 17. Putting the rental income into accounts for your children will not make it theirs for tax purposes. You will need to complete tax returns, though if you have a PAYE source of income, look here for some options as regards ***** ***** disclosure.

As far as saving accounts for your children are concerned, take a look at the notes here, here and here. If an account for a child under 18 is funded by a parent and the income it produces is over £100 per tax year, such income will be treated as the parent's for tax purposes.

I hope this clarifies things but let me know if you have any further questions.

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