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It seemed like a good idea at the time!

Shared from Tax Insider: It seemed like a good idea at the time!
By Mark McLaughlin, April 2022

Mark McLaughlin outlines two income tax anti-avoidance provisions aimed at discouraging the transfer of income such as rents. 

A question often asked by investment property landlords is whether they can transfer the right to rental income to family members, whilst retaining ownership of the property (e.g., a parent wants their adult offspring to receive the rental income from their buy-to-let property, to help them save for their first home). 

There are various potentially complex tax implications to address. This article highlights two of them, but in practice the question must be considered ‘in the round’, taking account of tax and non-tax law.  

Is that ‘settled’? 

In the above scenario of a parent and adult child, the ‘settlements’ anti-avoidance rules can apply to counter any income tax saving for the parent if they can

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