B T L second mortgage

scaniarob

hi all ,

i have a btl house in my name only and want to buy a second one in april (found the right house ,doing a deal with the developer) would there be any advantages - disadvantages in putting it in my name or the wifes

thanks in advance rob :beer:

Mr_helpful

not really unless she is a non tax payer or pays at a rate lower than you. Putting in wifes name would mean extra paper work for taxman as 2 returns needed.

AndrewSmith

Depends on your own tax situation and that of your wife's from an income tax point of view. There is however capital gains tax to consider as well on subsequent sale of the property.

Income tax: If you are paying basic or higher rate tax and your wife pays lower rate or nill then there is a very strong argument for placing the property in her name.

From a CGT point of view then you should consider it to allow utilising both your wife and your CGT exemption limit should you decide to sell in the future. It could save you a fair bit in tax at point of sale for the sake of filling out a second self assesment return.

Andy

silvercar

I would put the property in joint names, make sure you don't sell it in the same tax year as you sell the other BTL and you will have £9,200 x 2 = £18,400 capital gains allowance on this one.

All other things being equal, consider putting your first BTL into joint names for the same reason.

People usually find that the interest payments can offset the rental income to lower the income tax liability.