Tax on rental property

marmyfats

I wonder if anyone can advise the best way to reduce the tax on a newly rented property. My concern is that I earn significantly more than my wife and really don't want to pay tax at the higher rate on the rental income.

Both the property and the mortgage are currently still in my name and due to the nature of the mortgage this can't really be changed.

Can my wife be classed as the landlord and receive the income? If so, can she offset the mortgage etc. against the rental income if it's not in her name.

Thanks

heretolearn_2

Quick answer, no.

00ec25

slightly slower answer...

- the property is wholly in your name
- you are married

the wife therefore cannot receive the income unless she too becomes an owner, one of the downsides of marriage, the income must be associated with actual ownership

marmyfats

I thought it was a long shot, though worth asking the question.

anselld

marmyfats wrote: »

I wonder if anyone can advise the best way to reduce the tax on a newly rented property. My concern is that I earn significantly more than my wife and really don't want to pay tax at the higher rate on the rental income.

Both the property and the mortgage are currently still in my name and due to the nature of the mortgage this can't really be changed.

Can my wife be classed as the landlord and receive the income? If so, can she offset the mortgage etc. against the rental income if it's not in her name.

Thanks

Not sure how the nature of the mortgage prevents your wife being added as a joint mortgagee.

You could choose to own the property as Tenants in common, 1% owned by you 99% by her. The mortgage would then need to be joint, but if your income alone supports it, why would they not add your wife?

As others have posted, you cannot allocate the income to her without changing ownership.

Randvegeta

Perhaps you could 'hire' your wife to manage the property and pay her a salary. Expenses should be deductible no?

Alternatively, you could let the property to your wife for a very small sum and she can sub let it perhaps?

ceeforcat

Randvegeta wrote: »

Alternatively, you could let the property to your wife for a very small sum and she can sub let it perhaps?

How would she claim the mortgage interest?