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income tax bracket increase??
Comments
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flopsy1973 wrote: »yep i thought it would all be taxed at 40 % big relief !!
what else is there i could do ???
Why "do" anything? Your finances are uncomplicated, just enjoy the increased income.0 -
If you are married, does your partner work? consider transferring the income from the rental to your partners name maybe? Make sure you are claiming all of the expenses you can for the rental like mortgage interest and fees etc.
But yes, it is only the little bit in the 40% bracket that will be taxed at 40% so maybe work out if it would be beneficial to actually do anything since the difference could be negligible.0 -
If you are married, does your partner work? consider transferring the income from the rental to your partners name maybe? Make sure you are claiming all of the expenses you can for the rental like mortgage interest and fees etc.
But yes, it is only the little bit in the 40% bracket that will be taxed at 40% so maybe work out if it would be beneficial to actually do anything since the difference could be negligible.
How would you do that if the house Deeds/Mortgage is not in the partners name? Would all of that need to be changed?0 -
If you are married, does your partner work? consider transferring the income from the rental to your partners name maybe? Make sure you are claiming all of the expenses you can for the rental like mortgage interest and fees etc.
The allocation of income from a jointy-owned property for tax purposes must reflect the ownership. So it a property is owned by joint tenants it's 50/50; if it's owned by tenants in common it follows the declared division of ownership.
In most cases it is simply a case of the more you earn before tax, the more you earn after tax. The only reason I can see to not increase your income as much as possible is if it would disqualify you for some means-tested benefit.Let's settle this like gentlemen: armed with heavy sticks
On a rotating plate, with spikes like Flash Gordon
And you're Peter Duncan; I gave you fair warning0 -
my position is my house is in my name and i am moving in with my partner who works. As she will be losing her tax credits when i move in i will be giving her the rental income i get. Is there some way i can put this income in her name ??? or any other way around this. Iv worked out i will be around 4k over the higher tax bracket. I have put in the max to my company pension scheme regarding the other suggestion in a earlier post ??
Thanks0 -
flopsy1973 wrote: »my position is my house is in my name and i am moving in with my partner who works. As she will be losing her tax credits when i move in i will be giving her the rental income i get. Is there some way i can put this income in her name ??? or any other way around this. Iv worked out i will be around 4k over the higher tax bracket. I have put in the max to my company pension scheme regarding the other suggestion in a earlier post ??
Thanks
Any advice here also can i claim against expenses for getting the property ready for letting? eg replacing a defective shower etc0 -
flopsy1973 wrote: »Is there some way i can put this income in her name ??? ?
Thanks
Only if she owns/part owns the property. So if you split up she will get to keep it.0 -
you cannot "put" the income in her name unless she also becomes entitled to it because she is a part owner.
the danger here is you are getting the tax tail to wag the dog
it is your property which she has never lived in. You have not answered the question are you married. If you make her an owner and "give" her the rental income then you are voluntarily opening yourself up to paying a lot more capital gains tax as a pair of owners when it is sold than if you don't make her an owner and sell it just by yourself because she will not get any CGT relief on her share
yes you can claim pre letting expenditure providing it is revenue expenditure not capital expenditure.
You should read a decent book on how property tax works rather than trying to learn it in disjointed fashion via a forum or read the bits of the HMRC manual which apply to you!!!
http://www.hmrc.gov.uk/manuals/pimmanual/index.htm0 -
thanks for that, yes sorry we are not married she owns her own property, but with a far bigger mortgage than mine. So any suggestions what else i could do ?0
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