Should I purchase house on wife's name?

whiskywhisky

Hi All

I am currently viewing repossessed houses, with the view to purchase a BTL fairly soon. This will be a cash purchase, additionally I am employed @ 40% tax and my wife is a housewife, with no income.

The money for the house we will buy is from our joint account, and being my wife the money obviously belongs to both of us.

When I purchase the house should I put it solely in my wife's name? this will effectively save us a lot when it comes to self assessment?

Additionally I guess my main question, I assume this is legit and cannot cause any issues in the future with my wife being asked where the money for the house purchase came from?

Thanks

Caroline73_2

I can't help on the tax side of things but you would run into problems if she decided to divorce you and then the house is solely hers though.

Mary_Hartnell

There is absolutely nothing to stop you giving your wife a gift of cash.
She then buys a BTL.
Obviously if your relationship was to fall apart, you might find she had (re)mortgaged it unbeknown to you.
You have to trust someone some time in your life.
Get her to "manage" it and learn how to do her own tax return and she might become more savvy on matters commercial.
I cannot make any other comments because I don't begin to know your personal circumstances or even how you propose to run your letting business.;

whiskywhisky

Thanks for response - I am not interested in knowing about the implications of our marriage falling out, as they are fairy obvious.

I only question was about "tax" - and I guess we can go ahead on a house purchase on solely my wifes name and she can "manage" it.

CLAPTON

whiskywhisky wrote: »

Thanks for response - I am not interested in knowing about the implications of our marriage falling out, as they are fairy obvious.

I only question was about "tax" - and I guess we can go ahead on a house purchase on solely my wifes name and she can "manage" it.

curtesy costs nothing
dis-curtesy may discourage people from replying
reread your post, you didn't in fact mention tax at all.

Pee

Speak to an accountant, I think that rent can be paid to one of two coowners and treated as their taxable income, as long as it is in fact paid to that person.

In a divorce it doesn't matter whose name assets are in. the courts have jurisdiction.

There is no IHT or CGT between husband and wife, so no harm in it being in her name now and in the future you may want to transfer it into joint names, that would be fine.

whiskywhisky

Thanks Pee.

I have always thought of having it solely in my wifes name, and will still to that. As a Mary_Hartnell stated I can provide this as a gft.

Caroline73_2

whiskywhisky wrote: »

Thanks for response - I am not interested in knowing about the implications of our marriage falling out, as they are fairy obvious.

I only question was about "tax" - and I guess we can go ahead on a house purchase on solely my wifes name and she can "manage" it.

How rude of you. Manners cost nothing.

You asked about future issues and I brought a potential issue up. As for it being 'fairy [sic] obvious', it might not have crossed your mind or you may not know. Many people wrongly believe that just because people are married they are entitled to half of everything.