I met with a new client earlier this week. She has rented her main property and brought a small flat to live in to reduce basic living overheads etc.
My client has the rent paid direct to her.
She is married but her husband now lives and works permanently in Canada.
He owns 50% of the property being rented out and will entitled to receive 50% of the gain (or loss).
His 50% income each year will not exceed his UK personal allowance.
He has no other UK income.
My client has advised that her husband will report any gain on his Canadian Tax Return.
However, I am not sure it's as simple as that (is it ever)
Am I right in thinking that I divide the profit/loss into 50% shares and report my clients share on her SA return.
I am inclined to think that he could be treated as a Non Resident landlord and would need to make application to HMRC to receive rental income with no tax deducted.
