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Renting a property in my name only; can the wife be the landlady?
Edtough
Posts: 144 Forumite
Hi all,
I have a property in my name only, that I bought 5 years ago and am now renting out. For tax reasons, I would like my wife to become the landlady. First of all, in the eyes of the Inland Revenue, is my wife allowed to be the landlady of a property she doesn't own (but her husband does)?
Secondly, I am paying a small mortgage on the property. If the mortgage is in my name, can the wife use these payments as a tax deductable? And if not, can I remortgage so that the wife is the mortgage holder, again on a property she doesn't technically own?
Cheers guys
I have a property in my name only, that I bought 5 years ago and am now renting out. For tax reasons, I would like my wife to become the landlady. First of all, in the eyes of the Inland Revenue, is my wife allowed to be the landlady of a property she doesn't own (but her husband does)?
Secondly, I am paying a small mortgage on the property. If the mortgage is in my name, can the wife use these payments as a tax deductable? And if not, can I remortgage so that the wife is the mortgage holder, again on a property she doesn't technically own?
Cheers guys
0
Comments
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Hi all,
I have a property in my name only, that I bought 5 years ago and am now renting out. For tax reasons, I would like my wife to become the landlady. First of all, in the eyes of the Inland Revenue, is my wife allowed to be the landlady of a property she doesn't own (but her husband does)?
Secondly, I am paying a small mortgage on the property. If the mortgage is in my name, can the wife use these payments as a tax deductable? And if not, can I remortgage so that the wife is the mortgage holder, again on a property she doesn't technically own?
Cheers guys
If you own the property you are the landlord.
Even the HMRC will have spotted such a simplistic tax avoidance scheme.0 -
"for tax reasons" you mean "for tax avoidance"..... no would be the answer.
You could sell the property to your Wife, let her take out an interest only mortgage and she could then become the landlord and collect the rent, off set the interest only mortgage against the tax. Winner.
You may have to pay Capital Gains Tax but you could avoid that too if you make the purchase price under £125,000 but she would have to pay the CGT when/if it gets sold for proper money."Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!0 -
1) No.Hi all,
..... First of all, in the eyes of the Inland Revenue, is my wife allowed to be the landlady of a property she doesn't own (but her husband does)?
Secondly, I am paying a small mortgage on the property. If the mortgage is in my name, can the wife use these payments as a tax deductable?
And if not, can I remortgage so that the wife is the mortgage holder, again on a property she doesn't technically own?
Cheers guys
2) No
3) Yes, if a) you transfer the property into her name and b) she applies for and is accepted for a mortgage0 -
Foxy-Stoat wrote: »"for tax reasons" you mean "for tax avoidance"..... no would be the answer.
You could sell the property to your Wife, let her take out an interest only mortgage and she could then become the landlord and collect the rent, off set the interest only mortgage against the tax. Winner.
You may have to pay Capital Gains Tax but you could avoid that too if you make the purchase price under £125,000 but she would have to pay the CGT when/if it gets sold for proper money.
Makes sense.0 -
So I'd incur stamp duty and legal fees if I transferred the property into her name?0
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Legal fees yes, stamp duty if its over £125,000 sale price."Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!0
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OP how much is the annual rent and annual interest of your other property?
May not be worth messing about....."Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!0 -
Yes, exactly. I'm just doing my homework to decide if it's worth it.0
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