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  • FIRST POST
    • HHBB
    • By HHBB 5th Feb 18, 4:45 AM
    • 18Posts
    • 3Thanks
    HHBB
    Rental sharing tax with four owners.
    • #1
    • 5th Feb 18, 4:45 AM
    Rental sharing tax with four owners. 5th Feb 18 at 4:45 AM
    Grateful for any clarification of the scenario of two married couples, through inheritance, sharing a quarter each of the rental of a house. Normally, the rental profits would be taxed 50/50 between spouses, but could be 90/10 between non-spouses.
    Would it therefore be possible for the two non-spouses to have an arrangement, so that the two non-taxpayers wives could take the higher percentage of the rental against the other's higher paying tax husband ?
    HMRC don't appear to have a clarification of this scenario on their help pages.
    Thank you.
    Last edited by HHBB; 05-02-2018 at 4:46 AM. Reason: Grammar
Page 1
    • Tom99
    • By Tom99 5th Feb 18, 8:08 AM
    • 1,308 Posts
    • 834 Thanks
    Tom99
    • #2
    • 5th Feb 18, 8:08 AM
    • #2
    • 5th Feb 18, 8:08 AM
    If it was a death less than two year ago which resulted in this inheritance then with a deed of variation the parties can arrange ownership to whatever proportions they like.
    • kidmugsy
    • By kidmugsy 5th Feb 18, 5:32 PM
    • 10,198 Posts
    • 6,923 Thanks
    kidmugsy
    • #3
    • 5th Feb 18, 5:32 PM
    • #3
    • 5th Feb 18, 5:32 PM
    What's the objection to the two high-earning spouses gifting most or all of their ownership fractions to their low-earning spouses?
    Free the dunston one next time too.
    • purdyoaten2
    • By purdyoaten2 5th Feb 18, 5:43 PM
    • 824 Posts
    • 387 Thanks
    purdyoaten2
    • #4
    • 5th Feb 18, 5:43 PM
    • #4
    • 5th Feb 18, 5:43 PM
    What's the objection to the two high-earning spouses gifting most or all of their ownership fractions to their low-earning spouses?
    Originally posted by kidmugsy
    Indeed. And one must ask - what is the tax saving here? On a profit of £4000 the saving would be £400 a year in tax. However, upon sale two CGT allowances would have vanished while the rate of CGT on half the gain would reduce by 10%. Is this a case of the tax tail wagging the dog?
    purdyoaten lost his password
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