Buy house in child's name ?

[Caoimhin2006]

Sorry if this has been answered elsewhere: say (hypothetically) I have enough cash to buy a rental property in full. Is it logical/viable to buy it in my 4 year old child's name? The theory would be that the child would pay tax on the rental income at the lower income tax rate, whereas the parent as a higher rate taxpayer would pay at the higher rate.

Thanks in advance.

 

[T McGibney]

Is it logical/viable to buy it in my 4 year old child's name?

No.

The theory would be that the child would pay tax on the rental income at the lower income tax rate, whereas the parent as a higher rate taxpayer would pay at the higher rate.

You'll end up being assessed on that income.

 

[Caoimhin2006]

Thank you so much TMcG