Mortgate in joint names and plan to rent the property....

noodle69

I have a house and would like to add my husbands name to the deeds and rent the property out. He is a high earner whilst I look after the family. Will having this property in his portfolio and/or earning rent affect his tax status or will I be able to take the hit?

Fire_Fox

Welcome! It's worth running an advanced search, taxation for landlords comes up several times a week. Whoever is on the deeds pays tax.
http://www.hmrc.gov.uk/incometax/index.htm
http://www.hmrc.gov.uk/manuals/pimmanual/index.htm

slopemaster

Fire_Fox wrote: »

Whoever is on the deeds pays tax.

But if you were tenants in common with a 99% / 1% split, then the income can be split in the same proportion.

kingstreet

Leave it as it is.

The number of joint owners who come on here asking about changing the title to single name or going TiC with 99/1 splits!

It's nice to have one who is already in the right position and should stay that way.

Ask the current lender for consent to let and find out if there are any costs involved.

Fire_Fox

slopemaster wrote: »

But if you were tenants in common with a 99% / 1% split, then the income can be split in the same proportion.

Indeed as per links posted, but what does that actually achieve?

Kynthia

It might be worth speaking to an accountant. However off the top of my head I can't see why you would want to put his name on the property now that you are planning to rent it out. He doesn't need it for protection as you are married. Also you can claim all of the rental income is yours and pay less tax on it. The downside is paying CGT when you sell as you will only have your allowance to reduce the liability. However depending on how much the property increases in value and the allowable deductions, you may not need your husbands annual allowance. Also you may be able to add his name to the property a while before selling to deal with this problem but a solicitor or accountant can advise you on this.