Discussion
Hi Everyone,
Long time lurker but first time poster!
I have a friend! (honest, it really is a friend) who is about to take out a 12 month rental agreement on a property. The monthly rental is being paid by a relative who lives in America. The lettings agency want the monthly rent to be paid from a UK account, even though the initial deposit was paid by credit card by my friends' relative. I suspect the lettings agency/landlord don't want to pay merchant fees on credit/debit cards.
The relative in America has passed the necessary credit checks etc. and the agency/Landlord are happy with the arrangement. My question is: if the monthly rent is paid by my friends' relative into her bank account to be passed on to the lettings agency by direct debit, are there any tax implications for my friend? Would this be seen as an additional income at all? The rent is in excess of £1700 pcm.
Many thanks.
Long time lurker but first time poster!
I have a friend! (honest, it really is a friend) who is about to take out a 12 month rental agreement on a property. The monthly rental is being paid by a relative who lives in America. The lettings agency want the monthly rent to be paid from a UK account, even though the initial deposit was paid by credit card by my friends' relative. I suspect the lettings agency/landlord don't want to pay merchant fees on credit/debit cards.
The relative in America has passed the necessary credit checks etc. and the agency/Landlord are happy with the arrangement. My question is: if the monthly rent is paid by my friends' relative into her bank account to be passed on to the lettings agency by direct debit, are there any tax implications for my friend? Would this be seen as an additional income at all? The rent is in excess of £1700 pcm.
Many thanks.
Not for your friend, but there might be for the giver.
https://en.wikipedia.org/wiki/Gift_tax_in_the_Unit...
https://en.wikipedia.org/wiki/Gift_tax_in_the_Unit...
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