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  • Tax

    What is property income?

    If you are claiming to HMRC that you are living as a couple and she is paying all the mortgage, when she moves out she may have a claim on part of the house. See Property rights of cohabiting couples in https://www.teeslaw.com/article/legal-rig...g-together

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    I'm aware of constructive trusts and proprietary estoppel but I don't claim to fully understand the intricacies.

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    I would expect the money being paid to the lender to be treated as income to you and be taxed as such.

    I would also expect the lender to question the tenant paying the mortgage and at some stage to consider the property to be a buy to let.


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    One assumes LL as usual receives the rent from tenant -to then paymortgage via DD from own account

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    That's the crux of the question. Does it actually make any difference if the occupier pays the lender directly rather than me being a middle man. I already have agreement to pay by SO so this shouldn't be a lender issue.

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    Who actually pays mortgage is immaterial in this situation - but you do need to declare by end of month to avoid the £100 filing penalty - hopefully you are registered for online filing of tax return.

    As you say - no tax to pay - so just the admin of the SA to do.

    Personally I would want rent paid direct to me so I know it's being paid and then pay mortgage via DD.

    You may just have time to get Govt Gateway password if not already plugged in. If not act immediately as paper filing deadline was end October 2018.

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    That was my thought. There will be no tax liability, but if it is property income I would also have to declare the lodger income, which also has no tax liability.

    I really don't have an issue with the lender, I've been paying the IO mortgage via SO for many years and I have consent to let. I can't sell for another 6 years nor transfer to a BTL and it seems a shame to only use it on occasional weekends whilst still paying the mortgage interest.

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    If all income comes within RAR allowance and personal allowance it’s not likely to be an issue other than ensuring income is declared.

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