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Can you split rental income between 4 people.. (2 married x2)
katy123
Posts: 365
Forumite
We have just put in an offer for another property and was wondering how this would work in practice.. . All examples I find online is what seems to be 2 unmarried people.... Our situation is like this... Me and my spouse will each own 25 %and my parents will also each own 25% each... This will be our second property together so parents will be basic rate taxpayer with me and spouse being higher rate.... As there are two married couples in this setup can we still split the rental income so that my parents each receive 50 percent of the rental income?will be held tenants in common.....
Not sure if form 17 comes into play.
Not sure if form 17 comes into play.
0
Comments
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Yes you can split the rental income as many ways as you wish.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
so the legal ownership will be 25/25/25/25 and that will be reflected in the TIC registration
there are 2 pairs involved in the ownership and therefore as pairs they may agree to split the income between the 2 pairs in whatever proportion they want to. It seems you are proposing the beneficial interest will therefore be different to the legal interest and will be 100/0 parents/you
your parents, on receipt of the 100%, are married and so assumed to split everything 50/50. Parents would only need to do a Form 17 if your parents want to split their 100% into something other than 50/50
you and your husband must document that fact you both are giving up respective entitlements to the rental profit and therefore have no tax liability on it - it would be best if this was done as a declaration of trust
you need to take professional advice as to how any expenditure is then handled because if you pay a share of any repair costs etc your parents cannot claim that share against their tax liability, and as you have no income there is nothing you can offset your spend against either0
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