Status of landlord

Montablane

We are letting a house which is owned by me i.e. I am on the deeds. We want my wife to take the income however. A letting agent has told me that she cannot be named as the landlord on the tenancy agreement and therefore cannot have the income paid in her name. Does anyone know if it is legally binding that the landlord stated on the tenancy agreement must also be named on the deeds? I have also heard about getting a solicitor to draw up a declaration of trust between me and my wife so that she is deemed to be the beneficiary for tax purposes. Does this solve my problem even if the rent payments are made in my name?

Any help is greatly appreciated.

clutton_2

i think the tax man might wonder why she will be receiving an income from an asset which is not hers

theartfullodger

IIRC Tax man is quite likely to decide for you (regardless of what you declare to him) to allocate income based of who owns what proportion: So if all owned by you - your income, if all owned by wifee her income taxed, if owned 50/50 taxed 1/2 of income on your return, 1/2 income on hers...

And they don't take kindly to being lied to (honesty in business affairs usually works out easier & cheaper in the end, and is surely the British way...).

So, gift the house (correct market value now.!!!!!... ) to her and problem solved! You can trust her eh?? & for the next 45 years???

Cheers!

Lodger

Montablane

Thanks for the reply. I have no intention of being dishonest would like to be tax efficient.

Regshoe

Would it be illegal to let it to the wife for a nominal amount and then allow her to sublet? I'm guessing it probably is - just not sure what the technical term would be (other than tax evasion!).

poppysarah

For proper advice speak to an accountant. The tax man will come and get you if you mess it up trying to avoid a bit of tax.

Fire_Fox

Couldn't you name your wife as your agent and therefore the money could be paid to her?