New queries, issue 4446

Siblings and rent

Tax treatment of rent from a jointly owned property being paid solely to one owner.

We have recently started acting for a brother Mr A and his sister Mrs B. They have some joint business interests and some separate business interests.

Mr A and Mrs B were gifted a property by their father a number of years ago. Mrs B has always maintained that the property belongs to Mr A and does not want anything to do with it. The property has been let on a commercial basis in the past and the income has been recorded on Mr A’s tax return only.

I have asked the brother and sister whether there is a signed agreement in place to record the income treatment and although being told there is I have not seen it.

The tenants of the property have...