My Brother has a rental property bought 10 years ago which is worth slightly more than the mortgage. It was bought as a home but he lives and works elsewhere (due to marriage).
He's paying a bit of income tax due to the 75% rule (lately it's more than washing its face due to a good tracker and the low interest rates).
Is it possible for him to add his child's name to the title - or transfer - so that the income would be in the child's name?
Would the bank allow it? or would it affect the tracker(He is happy to remain liable for the mortgage - as the amount outstanding falls he will be liable for increasing amounts of tax - where as his child would have a good tax free allowance for the rental income).
Would revenue treat this income as child's income? As the net value of the house is currently minimal I think the gift value is small.
I believe this would have Inheritance Tax benefits too.
thanks
He's paying a bit of income tax due to the 75% rule (lately it's more than washing its face due to a good tracker and the low interest rates).
Is it possible for him to add his child's name to the title - or transfer - so that the income would be in the child's name?
Would the bank allow it? or would it affect the tracker(He is happy to remain liable for the mortgage - as the amount outstanding falls he will be liable for increasing amounts of tax - where as his child would have a good tax free allowance for the rental income).
Would revenue treat this income as child's income? As the net value of the house is currently minimal I think the gift value is small.
I believe this would have Inheritance Tax benefits too.
thanks