Property split between husband and wife

arfur · 23 January 2010 at 3:00PM

For the tax year 2008/2009 the property rental we have is split 50/50 as per Inland Revenue guidelines, however I am on 40% tax code and husband is on 22%.

I understand that a declaration can be made where by % split is higher for husband. However last accountant and this accountant did not seem to know much about it!

I have looked on Inland Revenue website and know there is a form that can be filled in but also makes reference to a deed.

I need to keep the mortgages in joint names but have no issues in signing higher % to husband.

Any advice grateful.

TM1976 · 23 January 2010 at 3:50PM

If you own 50% each the split should be 50%.

arfur · 23 January 2010 at 3:57PM

I understood that you can alter the split and this is acceptable to the Inland Revenue as they have a specific form for this case. It is only the mortgage in joint names as I work full time and husband looks after the houses, so in reality it is not 50/50

TM1976 · 23 January 2010 at 4:04PM

The split should be on ownership of 50/50.

Technically its possible to change the split ie give more than 50% of ownership to your husband if you want to do that. It may be possible to split the income a different way through a formal agreement but I'm not sure of the tax position on this, really you accountant should be best placed to advise on this.

Cook_County · 23 January 2010 at 11:19PM

You would have to sever the joint tenancy and then gift a portion from one spouse to the other. I would get a solicitor to do the drafting.

boliston · 23 January 2010 at 11:49PM

There's "tenants in common" and there's "joint tenants". One of these allows non equal shares so best to check what the current agreement is and get it amended if need be.

It would make far more sense if all agreements allowed non equal shares as how often in real life do both parties put in exactly the same equity at the outset? It would save so much hassle if there is a split at some future date.

Cook_County · 24 January 2010 at 12:59AM

boliston wrote: »

There's "tenants in common" and there's "joint tenants". One of these allows non equal shares so best to check what the current agreement is and get it amended if need be.

It would make far more sense if all agreements allowed non equal shares as how often in real life do both parties put in exactly the same equity at the outset? It would save so much hassle if there is a split at some future date.

I thought that is what I said? Most property is owned as joint tenants, but this can be changed to tenants in common if appropriate. I am not sure why Parliament should be changing the law on this, or if that is really a great idea?

zygurat789 · 24 January 2010 at 5:05PM

In any partnership the assets may be owned equally and the profits divided between the partners as they wish.

arfur · 24 January 2010 at 5:10PM

Is it just a case of advising the Inland Revenue of the % split or does this need to be noted via a solicitor and involve noting with Land Registry?

Errata · 24 January 2010 at 5:26PM

If you are joint tenants you both own 100% of the property. Tenants in common can specify the percentage split.

Mikeyorks · 24 January 2010 at 5:27PM

Read post #5. You can't just arbitrarily determine a split that is currently beneficial to you and expect it's simply accepted.

http://www.hmrc.gov.uk/manuals/Inmanual/html/In1125/16_0027_IN1192.htm

http://www.hmrc.gov.uk/manuals/Inmanual/html/In0050/03_0034_IN125.htm

Property split between husband and wife

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