Have I caused myself some tax problems?

UK Discussion in 'Individuals' started by craggyjohn, Jul 19, 2018.

  1. craggyjohn

    craggyjohn

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    Dear forum,
    We bought and renovated a student rental property last year, and the early part of this year, and now it is fully rented.
    When we bought it, we put it in our daughters name on the deeds, partly to save stamp duty (she was not a homeowner), and partly because long term we want her to have the property after we die.
    Our idea was that she would be the legal owner, but we would be the beneficial owners, for our lifetime. Once we are dead and gone she has an appreciating asset as provision for her later years.
    Anyway, we have had some conflicting advice that this may have been a bad move in terms of income tax. I assumed that if we collected the rent, we would be liable for income tax via our tax returns, but not my daughter.
    She has a busy job in London as an employee, and would not welcome having to complete a tax return.
    Have we done the wrong thing? Is there a way to fix it, legally.
    All advice welcome, especially from an accountant or experienced landlord.
     
    craggyjohn, Jul 19, 2018
    #1
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