BTL Mortgage Expenses on shared property

[BiggieBig]

Hi
I have a BTL mortgage on a property with unequal share between myself and my father.
He purchased he's share with Cash and I purchased via Mortgage + deposit hence I have been responsible for all payments.

I have now been advised that any profits and costs (including mortgage) have to be dividend as per share.

Originally I was advised that we were both to be named on the mortgage as per deeds, however I was the main applicant and grantor and ultimately responsible for the payments.

any thoughts ?

[northernladuk]

Seems fair enough.

[BiggieBig]

Seems fair enough.

Fair to who

not to me

I now have to pay tax on profits that I have not really made since I can't off set the full interest on the payments.

win win for HMRC though

[northernladuk]

So you've got this problem with only one property?

[ChimpMaster]

Sounds like you bought as Tenants in Common so that you can declare a specified shareholding.

Ask your accountant - assuming he is a real property accountant - about “Declaration of beneficial interests in joint property”, HMRC form 17.

[BrilloPad]

Fair to who

not to me

I now have to pay tax on profits that I have not really made since I can't off set the full interest on the payments.

win win for HMRC though

Didn't you ask your accountant first?

Its not just a win for HMRC. Its a win for anyone who wants to get on the housing ladder. No mortgage payments should be offsetable. And there should be a tax on rental profits. 100% would do nicely.

[ChimpMaster]

Didn't you ask your accountant first?

Its not just a win for HMRC. Its a win for anyone who wants to get on the housing ladder. No mortgage payments should be offsetable. And there should be a tax on rental profits. 100% would do nicely.

It's good that you don't run a real business then, and have always paid full PAYE on your contracting income. After all, it's only 'fair' to anyone who is a permie and can't be bothered to better themselves by risking a move to contracting.

Anyway this is in Accounting/Legal so let's stick to helpful comments only shall we.