Add child's name to title of rental property

[Nalah]

My Brother has a rental property bought 10 years ago which is worth slightly more than the mortgage. It was bought as a home but he lives and works elsewhere (due to marriage).

He's paying a bit of income tax due to the 75% rule (lately it's more than washing its face due to a good tracker and the low interest rates).

Is it possible for him to add his child's name to the title - or transfer - so that the income would be in the child's name?

Would the bank allow it? or would it affect the tracker(He is happy to remain liable for the mortgage - as the amount outstanding falls he will be liable for increasing amounts of tax - where as his child would have a good tax free allowance for the rental income).
Would revenue treat this income as child's income? As the net value of the house is currently minimal I think the gift value is small.


I believe this would have Inheritance Tax benefits too.

thanks

 

[Setanta12]

Your question essentially is:- can he sell it or a share in it, to his son?

Yes. But it would be treated as being sold at MV. The bank would seek to have the mortgage repaid. And the son, where would he get the cash to pay for the share? Probably a 'loan' or gift from his father ... but in any case, the Bank would have been repaid.