Joint rental property
LynWest
Registered Posts: 122 Beyond epic contributor 🧙♂️
I have a client who has a property that husband has been using to crash in during the week, whilst at work and then coming home at the weekend. His work has now ended and he has a new job, so instead of selling the flat they are looking to rent it out. It is currently in joint names. Husband is a higher rate tax payer and wife is a basic rate tax payer. I advised that the property needs to be in the wifes name for her to be able to put the whole income on her tax return. If it was left in joint names, the income would have to be split and 40% paid on the husbands share, She has gone to her solicitor to get this done and the solicitor has said that she rents a joint property with her husband and the income all goes on hers and it is not necessary.
My client has since gone on the internet and has said that all she can find on the subject is a deed of trust on HMRC's website and form 17. Whereby they can put 1% in hubbies name and 99% in hers, without putting the property in her name. Is this correct please? I thought the deed of the property had to be in the name of the one partner and a form 17 completed for the one partner of choice to declare the income; otherwise HMRC would always split the income on a joint property? Sorry if i am being dumb. I don't come across of rental properties and i am a little confused on it all
All advice welcome
My client has since gone on the internet and has said that all she can find on the subject is a deed of trust on HMRC's website and form 17. Whereby they can put 1% in hubbies name and 99% in hers, without putting the property in her name. Is this correct please? I thought the deed of the property had to be in the name of the one partner and a form 17 completed for the one partner of choice to declare the income; otherwise HMRC would always split the income on a joint property? Sorry if i am being dumb. I don't come across of rental properties and i am a little confused on it all
All advice welcome
0
Comments
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This probably helps the most - http://www.accountingweb.co.uk/anyanswers/question/property-jointly-owned-familyRegards,
Burg0 -
Thanks Burg0
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