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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I'm just in the middle of purchasing a buy to let flat

Resolved Question:

Hello,
I'm just in the middle of purchasing a buy to let flat with my (unmarried) partner. I have invested money in the property with no mortgage but I do not want to take any monthly profits from it.
My question is, if the monthly payments get paid into my partners own bank account and he fills out a tax return, am I liable to declare or pay tax on any of the profits myself?
Also for info, I am currently in the 20% tax bracket and my partner is a full time carer claiming carers allowance, which we will stop once we complete on this property.
Thanking you in advance for your help.
K
Submitted: 10 months ago.
Category: Tax
Expert:  TonyTax replied 10 months ago.
Hi. The fact that the rental income may be paid into your partner's bank account does not make it his income for tax purposes. However, if you have both invested in the purchase, you can divide the income between you in whatever proportions you like and disclose it to HMRC as such. Take a look here for more information on this. I hope this helps but let m know if you have any further questions.
Customer: replied 10 months ago.
Thanks for your quick response and the link.
Is there a minimum amount for my portion that I would have to disclose to HMRC? For example, could it be 0% for me and 100% for my partner or would it have to be at least 10-20%?
Expert:  TonyTax replied 10 months ago.
It could be 0% and 100% if you wish.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15847
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 10 months ago.
Thank you for the information and your time.

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