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Where Taxpayers and Advisers Meet

siblings owning property

JamesBennett1981
Posts:2
Joined:Tue Sep 21, 2021 11:59 am
siblings owning property

Postby JamesBennett1981 » Tue Sep 21, 2021 1:22 pm

Hi all - I have a client who purchased a property with their sibling. They subsequently moved out of the property and sibling lives there with their family. Are there any tax implication for the self-assessment with one of the siblings living in the property and pay half the mortgage and the other sibling not living there but paying half the mortgage?

AGoodman
Posts:1286
Joined:Fri May 16, 2014 3:47 pm

Re: siblings owning property

Postby AGoodman » Wed Sep 22, 2021 4:55 pm

Can't think of any.

There isn't any income and nor are there any transfers of value. They are both paying the mortgage under an obligation to the bank and there is no rent foregone for inheritance tax purposes as there is no legal obligation to pay rent to the sibling not in occupation.

JamesBennett1981
Posts:2
Joined:Tue Sep 21, 2021 11:59 am

Re: siblings owning property

Postby JamesBennett1981 » Thu Sep 23, 2021 6:25 am

Thanks, AGoodman, I just look at it and it doesn't seem right, but like you, I could not think of any self-assessment tax implication as there is no income being received.


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