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Where Taxpayers and Advisers Meet

Transfer Let Property to Daughter

caron.66@virgin.net
Posts:5
Joined:Wed Aug 06, 2008 3:11 pm

Postby caron.66@virgin.net » Thu Aug 12, 2004 9:55 am

Husband and wife have purchased a second property to let (it is mortgaged and jointly owned), but would like daughter (student and not working)to live in it rent free, and take in a lodger, so rental income would be treat as hers.
The lender will not allow us to transfer loan into daughters name as she is not working.
Is there anyway this can be done.

Thanks
Caron

Simon Sweetman
Posts:1690
Joined:Wed Aug 06, 2008 3:11 pm

Postby Simon Sweetman » Fri Aug 13, 2004 9:03 am

What you could do is grant your daughter a lease on the property for a rent equal to the amount of interest you pay on the loan and allow her to sublet. Then her income for tax is rent she gets less the rent she pays you, and yours is nil as the rent you receive equals the interest you pay. But your lender might not like that either.

caron.66@virgin.net
Posts:5
Joined:Wed Aug 06, 2008 3:11 pm

Postby caron.66@virgin.net » Sat Aug 14, 2004 1:10 am

Thanks Simon, this is worth looking into
Does this affect our CGT at all, should we sell
(any relief)
Caron


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