Tax on rental income

greenoo000

My husband and I rent and own a property. On filling our tax forms each year we have split the rental income in half for each of our tax forms. My question is, this year I have hardly earnt anything due to losing my job, can i put down all the rental income as my earnings, and my husband not put any down?

martindow

As you have previously split it 50:50 I think eyebrows would be raised if it changed to 100% to one person. I would see if you can get a free half hour session with an accountant or tax specialist to ask the question before I went ahead.

clutton_2

i think that if the property is in joint names that you have to share the income... but dont quote me on it.. why not ask the HMRC ?

00ec25

the income must be apportioned exactly in accordance with the split of the ownership, so 50/50 if joint or according to whatever was your original agreed split if owned as tenants in common

It is a common piece of tax planning for the income to be "earned" by the spouse with the lowest tax rate, but the only way to legally do this is for a (legally married) husband and wife to transfer the property ownership apportionment between each other (there are no CGT implications for such transfers) and therefore have a revised legal basis for apportioning the income split. Note however that you will have to pay Land Registry fees for registering such a transfer