Buy to let income

baxy

Planning to cash buy a property to let. Husband age 63 on company pension. I am 60 and dont work so could the rent be paid to me and as it would be below the tax threshold be tax free.

ognum

If you want the rent entirely as your income then you need to purchase the house entirely in your name.

If you are married this is not a problem as if you die it will go to your husband anyway (unless your will says otherwise). If you divorce it will be considered part of your marital holdings.

I have done this, it's fine!

ognum

Also wanted to say that you will need to do a self assessment for tax, letting is a buisness as I'm sure you ate aware. There are many regulations you need to be aware of. Be prepared for your income from rental to fluctuate according to the repairs etc that are needed and think carefully about putting your money into a. Long term account as you return in the end may be better!

terryw

ognum wrote: »

If you want the rent entirely as your income then you need to purchase the house entirely in your name.

If you are married this is not a problem as if you die it will go to your husband anyway (unless your will says otherwise). If you divorce it will be considered part of your marital holdings.

I have done this, it's fine!

Here is a link to the HMRC regulations:

Jointly owned property - no partnership
Where there is no partnership, the share of any profit or loss arising from jointly owned property will normally be the same as the share owned in the property being let. But joint owners can agree a different division of profits and losses and so occasionally the share of the profits or losses will be different from the share in the property. The share for tax purposes must be the same as the share actually agreed.

However, where the joint owners are husband and wife, or civil partners, profits and losses are treated as arising to them in equal shares unless:

both entitlement to the income and the property are in unequal shares, and
both spouses, or civil partners, ask their respective tax offices for their share of profits and losses to match the share each holds in the property.
If a taxpayer’s only income from land and property in the UK comes from a jointly owned property, that share alone will form the rental business. If a taxpayer has other income from land and property in the UK, whether in their name alone or owned jointly with other people, their share from the jointly owned property will form a part of their rental business along with the other income and expenses on any other properties which they own alone. Once again, however, shares held in a different capacity (partner, trustee, executor) must be kept separate.

From:http://www.hmrc.gov.uk/manuals/pimmanual/PIM1030.htm