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Financial advice needed
Posted: Thu Nov 08, 2012 2:08 pm
by paddyz1
We are looking to buy the mother in laws house and then rent it back to them at a reduced rate. Whatever the mortgage is they pay half and we the rest to cover the mortgage. Can this be done legally or is there some bull shit law preventing this?
Posted: Thu Nov 08, 2012 2:17 pm
by flatlander
pm sent
Posted: Thu Nov 08, 2012 2:48 pm
by Aladinsaneuk
yep
fairly straight forward i believe - Geoff no doubt had sent you some advice
in all things legal, i would suggest setting up a meeting with a Citizens Advice Bureau legal advisor - its free and they will tell you where to start
Posted: Thu Nov 08, 2012 6:24 pm
by paddyz1
Cheers Geoff amd Pete.
Anyone know of what tax issues there will be?
We will be getting some financial advice so just putting out the feelers at the moment.
Posted: Thu Nov 08, 2012 7:38 pm
by flatlander
It used to be that as the property was then deemed to be subject to Capital Gains tax which could be offset by Taper relief also you may have to do a self assessment each year. Whatever costs you may accumulate in preparing and maintaining can be offset and losses can be carried forward to offset tax.
Simple terms keep all receipts and claim against the income and the profit left is then what you pay tax on
It isn't as bad as it sounds especially if you are more organised