I am going to let my flat and want to pay the tax out of the rental income, but my father and stepmother are the legal owners of the flat I have been told that they are liable for the tax, even though the rental income will be coming to me. Is there a way that I can be responsible for the tax and avoid them having to pay it?

Arthur Weller replies:
It sounds as though the flat is in the legal ownership of your father and stepmother, but you have the beneficial ownership. If so, you should establish this in writing, perhaps through a declaration of trust (note that this declaration of trust may have tax consequences - speak to a tax adviser). Once you have established that you have the beneficial ownership of the flat, then you are in receipt of the rental income, and you are responsible to pay the income tax on it. See HMRC guidance at: www.gov.uk/hmrc-internal-manuals/trusts-settlementsand-estates-manual/tsem9922