property retal - tax question

mah_jong

Hi, I hope this is the correct board.

My husband and I jointly own a property that is rented out (he bought out my brother).

Should the tax from the income be shared equally or as he is the landlord declare it all through his accounts as the income and expenses go in and leave his account?

Thanks in advance

CLAPTON

if it's jointly owned then the rental income is split 50-50 for tax purposes

antrobus

If you are husband and wife, there is a presumption that your jointly owned property is held in equal shares, and that any rental profit is split 50:50. If it is the case that the property isn't held in equal shares, then you can get HMRC to allocate the profit on that basis, but profit and ownership shares must be the same.

You have more latitude if you are not married, but since you are, that doesn't matter.

mah_jong

Thanks for the replies.

Just one more query , is the figure to be taxed half the profit? I assume we work out ins and out first and then we are each taxed on half the amount left over?

Horrendous spelling error in the title but I cant change it! Ooooppss

John_Pierpoint

In essence yes.
You might want to explore on here and on the wider interweb to see what you can claim as expenses.
Alternatively if you are letting it furnished, you can claim 10% of the rent as a tax free contribution to "wear and tear".

It is not quite as simple as it might at first appear; you have to distinguish between capital (enhancements) and revenue (repairs) and some of your expenses might not be allowable.