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SOLZHENITSYN

Accidental? Landlords

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So, speaking to a friend today. He bought a flat in Croydon a year ago. He's now buying a house with his girlfriend.

He was shocked about the extra 3% SDLT he'll need to pay. When I asked why didn't he sell his current flat, just said maybe in a few years - it's only gone up 8%. ??

when I pointed out S24 (same job a me so I know he's at least a 40% tax payer) would mean he'd take a big tax hit on his rent, he just said no worries. He's not going to declare the income and mortgage provider won't be told. I did point out that HMRC will have records that he owns 2 houses and might investigate. Answer to that was He's going to rent to his sister but not take any money from her. She'll put it into her ISA then gift it to him at a later date. That way there's no record of rent being paid to him.

I sometimes despair! ?

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On 04/01/2017 at 7:20 PM, SOLZHENITSYN said:

So, speaking to a friend today. He bought a flat in Croydon a year ago. He's now buying a house with his girlfriend.

He was shocked about the extra 3% SDLT he'll need to pay. When I asked why didn't he sell his current flat, just said maybe in a few years - it's only gone up 8%. ??

when I pointed out S24 (same job a me so I know he's at least a 40% tax payer) would mean he'd take a big tax hit on his rent, he just said no worries. He's not going to declare the income and mortgage provider won't be told. I did point out that HMRC will have records that he owns 2 houses and might investigate. Answer to that was He's going to rent to his sister but not take any money from her. She'll put it into her ISA then gift it to him at a later date. That way there's no record of rent being paid to him.

I sometimes despair! ?

If HMRC investigate he will problems explaining how he pays the mortgage

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