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Question Title: Overseas Tax
| Question: 204 |
| I have separate building society accounts for my overseas landlords in which I keep the tax monies until demanded by the Inland Revenue. These accounts are held in a building society that is about to float on the stock market and issue shares to account holders. What should I do with the shares that are issued because of the money held on behalf of my landlords ? I have checked and the shares would be issued in my name. Should I volunteer to give each of them the variable amount of shares and charge an administration fee or should I do this only if they ask me for the shares? Is there any legal obligation to give them any shares at all?
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| Answer: |
| An agent may not make silent profit on monies that he or she holds on behalf of a client and therefore has an obligation to disclose the fact to her client that shares have been issued on client accounts. The agent will need to obtain instructions from the client as to what should be done with their portion of the shares. An agent may consider making a proposal whereby the windfall could be split equally between the landlord and agent. Such a proposal cannot be put into effect without the permission of the landlord. It is also acceptable to make a reasonable administration charge for the extra time involved.
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References:
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Pages:
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Hyperlinks:
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Letting Update Journal |
Jan 2000 page 27 |
letting-update-journal.html
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Letting Handbook |
Chapter 14 |
letting-handbook-and-factsheets.html
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For more information, discuss on the Forum
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