I co-own a property with my son and we each include half of the rental profit on our self-assessment (SA) tax returns. My son does not earn very much and has been out of work quite a lot lately, so it seems crazy that he must complete a tax return in these circumstances. Is it possible for me to declare all the rental income of the property on my own self-assessment and pay the tax on his behalf? Then, he would be able to tell HMRC that he no longer needs to fill in a self-assessment return. 

Arthur Weller replies:  

I can understand that it is a bother for your son to complete a SA tax return, but if he is receiving the rental income, he must complete a return. If your intention is that you alone will receive all the rental income, and he will receive none – then HMRC’s Trusts, Settlements and Estates Manual (at TSEM9310) states that you can do as you suggest (i.e., you declare all the rental income and pay income tax on it, and he does not need to declare anything). However, you should consider whether between the two of you, the total income tax paid will be higher if you do as you suggest.