On Mortgage with Sibling Liabile for Income Tax

[cityworker]

Going back a few years my sibling and I decided to help each other out in purchasing houses. Neighter of our salarys allowed us to buy on our own.

To cut a long story short I bought a house in 2002 and in order to get the Mortgage my brother went on the Mortgage jointly . I was the only person named on the Deeds of the house.

2 Years later we remortgaed my house and used this to raise equity so that my brother could purchase his house. Again mortgage was in both our names but the Deeds of the house where solely in his name.

I am currently living in the first house we purchased however due to Ecomomic Circumstances my brother cannot now afford to live in his house and wants to rent his house.

My question is am I also liabile to pay income tax on the rental income if i'm named on the mortgage?

 

[Redjohno]

It's a bit confusing this one, but to clarify, you are now living in a house that you own. I'm not sure why you would be paying rental income to yourself.

In fact, you are probably due Mortgage Interest Relief from the time that you moved into the house. Only on the proportion of the mortgage relating to the initial purchase of the house - could be a good few quid there for you.

Your brother is jointly guaranteeing the mortgage, but is not on the deeds.