Tax on Rental Income

ceeforcat

Property furnished - you can reduce your profit by (5940-rates)/10. Known as Wear and Tear Allowance.

Jimbo333_2

BoGoF wrote: »

Nothing to do with who provided the deposit. If the property is in joint names any income will have to be split 50:50. The only other option is to legally transfer ownership to the person you want it be taxed on - hence the potential future problems.

So by that logic, I could buy properties and place them in whichever relative doesn't have a HRT income?

ceeforcat

Yes - but the relative will own the property and be liable for the tax and resultant CGT.

And, if you are thinking of transferring the property back to your name shortly before sale, don't. HMRC will be all over that transaction like a rash and regard the transaction to have occurred solesly to avoid tax.

Mikeyorks

Jimbo333 wrote: »

So by that logic, I could buy properties and place them in whichever relative doesn't have a HRT income?

Yes - you can gift them the properties if you wish. But they become theirs absolutely. Or HMRC will disregard the transaction if you gift (with reservation) and attempt to retain an interest ..... and likely proceed against you under their evasion powers.