Split of Rental Property income

hairylairyhairylairy Just JoinedRegistered Posts: 13
Can anyone please help. I have a married couple as clients. One receives a minimal £10 a year as sleeping partner in her husbands Partnership as a garage owner. She also earns and pays tax on her employment income. He has the Partnership profit (less £10), plus rental income, since 2005. As he's now considering selling one of the properties, asked me about CGT, and it transpires the Rental income should have been in joint names all along, split 50:50!. Going back though all the years though, there is only about £1500 extra tax due, when you take into account the reduction in his liability compared to the addition to hers. But how do I deal with this. I feel her addition in tax could come within the Let Property Campaign, but would the reduction for him fall with this? Any help very gratefully received.

Comments

  • douglasstrouddouglasstroud Registered Posts: 73
    Hi
    I have only had to do a couple of disclosures using the Let Property Campaign but agree with you that this will be the best course of action for the wife, however you will also have to factor in the interest and the % penalties for the years that you will be disclosing which may well turn out to be rather costly.
    With the husband as far as I am aware if the reason for the overpayment on the SA is their own fault (and this does seem to be the case) then HMRC will only let him claim a refund for the previous 4 tax years.

    Just my opinions and should not be taken as advice.

  • hairylairyhairylairy Just Joined Registered Posts: 13
    Thank you douglasstroud.
    They're not going to be happy with that !
    Don't suppose I can be sure of the outcome until I notify HMRC.
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