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Rental income, can my share be allocated to my wife ?
Tyler_Du
Posts: 712 Forumite
Bit of background, my wife and I equally own a rental property with my parents. The property is owned 25% each and all 4 names appear on the tenancy agreement as the landlords. The rent is paid into an account held in my wife and mothers names.
I work full time, my wife is a stay at home mum. I declare my 25% of the rent every year when I do my tax return.
The question is can my 25% be considered as income for my wife instead of me, she earns no other income.
I work full time, my wife is a stay at home mum. I declare my 25% of the rent every year when I do my tax return.
The question is can my 25% be considered as income for my wife instead of me, she earns no other income.
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Comments
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Tyler_Durden_UK wrote: »Bit of background, my wife and I equally own a rental property with my parents. The property is owned 25% each and all 4 names appear on the tenancy agreement as the landlords. The rent is paid into an account held in my wife and mothers names.
I work full time, my wife is a stay at home mum. I declare my 25% of the rent every year when I do my tax return.
The question is can my 25% be considered as income for my wife instead of me, she earns no other income.
I think that for this to work you would need to transfer your share of your equity to your wife, however there are risks to this for obvious reasons.0 -
Rather than fiddling the tax system to make money, has she/you considered her getting paid job and making even more £££££???
A bit of a radical idea I know but, just a thought....0 -
no it cannot unless you register a Form 17 supported by a declaration of trust altering the income split between you and the wife into another fraction - too late for that this yearTyler_Durden_UK wrote: »The question is can my 25% be considered as income for my wife instead of me, she earns no other income.0 -
no it cannot unless you register a Form 17 supported by a declaration of trust altering the income split between you and the wife into another fraction - too late for that this year
Except that the declaration of trust relates to the beneficial interest in the property. Which is to say, that in order for the wife to be taxed on what is now the husband's share of the income, she must also own that share of the actual property.0 -
theartfullodger wrote: »Rather than fiddling the tax system to make money, has she/you considered her getting paid job and making even more £££££???
A bit of a radical idea I know but, just a thought....
Can't recall anyone saying anything about fiddling the tax system.
Do you ever engage your brain before trolling threads I wonder ?
A bit of a radical idea I know but, just a thought...0 -
Tyler_Durden_UK wrote: »Bit of background, my wife and I equally own a rental property with my parents. The property is owned 25% each and all 4 names appear on the tenancy agreement as the landlords. The rent is paid into an account held in my wife and mothers names.
I work full time, my wife is a stay at home mum. I declare my 25% of the rent every year when I do my tax return.
The question is can my 25% be considered as income for my wife instead of me, she earns no other income.
As stated you could give her your 25% of the property and it'll all be taxable on your wife's self assessment.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
The simplest - and acceptable to HMRC - way of doing this is to simply transfer, as happy suggests above, your 25% share to the wife:Tyler_Durden_UK wrote: »Rental income, can my share be allocated to my wife ?.
Marriages between decent folk never end in divorce eh?
Same place & same question as 6 years ago??
https://forums.moneysavingexpert.com/discussion/2043955
Cheers!0 -
beneficial ownership and legal ownership are 2 entirely different mattersExcept that the declaration of trust relates to the beneficial interest in the property. Which is to say, that in order for the wife to be taxed on what is now the husband's share of the income, she must also own that share of the actual property.
a trust establishes beneficial ownership, income tax (and eventual CGT) is based on beneficial ownership. Do you have an HMRC link which says the legal ownership must be altered on top of both a DOT and Form 17?
http://www.hmrc.gov.uk/manuals/tsemmanual/TSEM9230.htm
http://www.hmrc.gov.uk/manuals/tsemmanual/TSEM9520.htm0
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