8:36 AM, 29th January 2016, About 6 years ago 3
My case seems to be quite peculiar. My partner and I are considering purchasing a small property in the UK as our first buy-to-let investment. I already own a property in the UK (where I live), whilst my partner doesn’t own any property.
My mother in France has been considerably helping me with my finances in the recent years. This has enabled me to contribute to this investment at 65% with my partner contributing the remaining 35%.
My partner (British) has been working and residing in France in the last 4 years and he will continue to do so in the near future.
Considering it would be difficult for him finding a lender who recognises his foreign salary, we have decided for me to be the only registered owner and party in the mortgage. We are arranging for signing a declaration of trust for protecting his 35%.
My questions are:
– Should he compile an annual tax declaration for his 35% net renting income?
– Should this tax declaration include his foreign employment income (now not declared – he does not have any income in the UK yet)?
– I have read that the letting agency can arrange for collecting a 20% tax for foreign landlords. Is this in alternative to him declaring his total income?
– Being in the declaration of trust, does this preclude him to apply for one of the new help-to-buy tools recently announced by the Government?
– I would also like to protect my mother and I am thinking for her being in the declaration of trust for the remaining 65%. She is a pensioner in France. The only difference is that she is not a British citizen or a British domiciled. Would the same principles apply to her (declare her net rent income and pension; or having the agency collecting the 20%)?
Many thanks in advance