Query on tax implications after transfer of land and property

[Uskane]

Land and property is currently being transferred to me by a relative on condition that the money which is earned from renting the land continues to go to my relative while he lives.

We are doing this for tax reasons, as there is no stamp duty on agricultural land transferred to qualifying young farmers (under 35), so will save quite a bit if I do this now rather than waiting to inherit, as I am 35 next year.

My question relates to income tax liabilities. Since I will be the owner of the land, will I be liable for income tax even though all the money would go to my relative. How should I deal with this from a tax point of view when filling out my self assessment form? Should I formally gift the receipts of the rent to my relative and can I write this off against the money received? Would my relative then have to pay gift tax? Or is there another way to deal with this?

Any advice welcome

 

[asdfg]

If the relative is elderly (over 65) you could set up a deed of covenent for the amount of the rent now. You can't amend the amount in the future so if rental falls or rises the amount on the covenent can't be changed See [broken link removed] for further info

 

[Allen]

I would have thought that you would be liable for income tax and your relative to whom you are giving the rent may be liable for gift tax, but I have no expertise in this matter.