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Letting and Tax

Hoping someone knows the answer to this....
I'm working full time, but my wife is not employed. If I rent out a property, can we declare this income on my wifes tax return rather than mine to reduce/eliminate the income tax.
The profit from the rental would be under her tax allowance, but on mine would be at 40%.

Comments

  • anselld
    anselld Posts: 8,738 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    HMRC Form 17 allows you to declare the proportions of interest in a shared property, eg 1% to you , 99% to your wife. However, you can only do this in line with the actual ownership of the property.

    You could gift the property or a proportion of it to your wife, and then declare it as such, but you cannot just declare it for tax purposes to be different from the actual legal ownership.
  • norinrad
    norinrad Posts: 6 Forumite
    edited 21 February 2010 at 1:58PM
    ok thanks. I read the form you refer to and it makes sense now.
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