Buy to let Property Income Tax

Bryan19

Hi all
First post here so hope I am doing this right.
My wife and I have a small BTL property - her share of the total income received after deductions is about £2,000 per annum. She has no other job and has no other source of income. Does anyone know if she has to decalre this money/fill in a tax return?
Any help greatly appreciated.

roger_c

If she is making a profit from property then she should really be declaring it to HM Revenue & Customs.

If she has no other income then she will have no tax to pay on the profit as long as it is lower than the personal allowance (£6,035 for 2008/09 and £6,475 for 2009/10). Probably the best thing to do would be to write to the Revenue and provide them with the information and they will decide whether she needs to do a return.

FROM HMRC WEBSITE:
Who needs to complete a tax return?

• self-employed people (including members of a partnership)
• company directors (except not for profit organisations)
• ministers of religion (any faith)
• people who get rent or income from land and property in the UK (but if you are an employee and this income is less than £2,500 a year a tax return may not be necessary)
• people who have other untaxed income and the tax due on it cannot be collected though a PAYE tax code
• people with taxable foreign income, even if they are not normally resident in the UK (this includes non-resident landlords)
• anyone who receives annually (or can be treated as receiving) income from a trust or settlement, or any income from the estate of a deceased person, and further tax is due on that income
• trustees and personal representatives (including people who manage the tax affairs of deceased persons)
• trustees of certain pension schemes
• names or members of Lloyd's
• employees and pensioners with more complex tax affairs - see below

Remember, if you have any income that is not taxed at source, like rents or freelance earnings, you may need to complete a tax return.

http://www.hmrc.gov.uk/sa/need-tax-return.htm#1

Bryan19

Many thanks Roger
Very helpful.