UK Landlord Forum / Life

We are purchasing a house, myself my wife and adult son. We have done it this way because it was easier to obtain the BTL mortgage.  However, our son has put up all the money, will manage the property and only he will benefit from any profit made from the rent.  My question is - does each of us have to declare the income to the tax office?  Both my husband and I work so obviously tax would need to be paid at full rate. Is there anyway we can declare to HMRC that we will not be benefitting from the rent and so avoid the hassle of self assessment? Our son is obviously "happy" to pay tax in full for any profit he makes himself.  Thank you.     

Always be wary of advice from a blog (especially my own)
Do your own research

Brexit
Have a look at how your solictor is going to buy the property.
Ask him if you are "tenants in common" or "joint tenants"... I know you are not the tenants but that is the legal speak.
See if the mortgage company will allow you and your wife to be 1% owners and your son 98%

I am assuming that the mortgage company would not allow you and you wife to be simply guarantors? Or you don't want that to be the case?

I'm afraid though even for the 1% you are required to complete a tax assesment form and declare the income.

Further
Note your son has effectively lent you your share of the deposit and he should charge you interest on that further reducing your (and your wife's) net income and transferring tax burden to himself.  You can make it very close to zero income for you and your wife...

If that doesn't work you could at least look into a declaration of interest form which allows you to move interest in the property and hence income between you and your wife (not son) not ideal but maybe one step to reduce the family bill if your wife is lower tax bracket than yourself.

Best of luck

See
https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17