Split of Rental Property income
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.