Financial advice needed

Message

paddyz1 · #1 Post by **paddyz1** » Thu Nov 08, 2012 2:08 pm

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?

flatlander · #2 Post by **flatlander** » Thu Nov 08, 2012 2:17 pm

pm sent

Aladinsaneuk · #3 Post by **Aladinsaneuk** » Thu Nov 08, 2012 2:48 pm

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

paddyz1 · #4 Post by **paddyz1** » Thu Nov 08, 2012 6:24 pm

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.

flatlander · #5 Post by **flatlander** » Thu Nov 08, 2012 7:38 pm

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