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Can I receive rents if I don’t own the property?

Question:

Question: Can I receive rents if I don’t own the property? 

Can my rental property be gifted to my child and the rental benefits still be paid to myself for my lifetime? 

Arthur Weller replies:  

Answer: You can certainly gift your rental property to your child. But the rental income will belong to them, and they will pay income tax on its receipt; see HMRC’s Trusts and Estates manual at www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9310. If afterwards they choose to gift to you the money they receive from renting out the property, that is a purely a gift from them to you. 

 

Question: Can I receive rents if I don’t own the property? 

Can my rental property be gifted to my child and the rental benefits still be paid to myself for my lifetime? 

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This question was first printed in Tax Insider in August 2020.