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BTL - income question

grade15
grade15 Posts: 543 Forumite
Part of the Furniture
in House buying, renting & selling
a house is owned by a couple equally and happy together. (no mortgage)
they rent the house out and get income.


can one person put all the income on their self assessment form because they are on a lower income tax band?
smile everyday...cos its free :)
Live everyday to the Full..cos there is no tomorrow:dance:
«1

Comments

  • Guest101
    Guest101 Posts: 15,764 Forumite
    Nope, 50/50
  • Pixie5740
    Pixie5740 Posts: 14,515 Forumite
    10,000 Posts Eighth Anniversary Name Dropper Photogenic
    Are the couple married?

    How is the property owned? Joint tenants? Tenants in common?
  • grade15
    grade15 Posts: 543 Forumite
    Part of the Furniture
    married and i think its joint tenant
    smile everyday...cos its free :)
    Live everyday to the Full..cos there is no tomorrow:dance:
  • anselld
    anselld Posts: 8,721 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    grade15 wrote: »
    married and i think its joint tenant

    In that case guest101 happens to be correct.
    It can be changed by ...
    (a) Sever joint tenancy
    (b) Create deed of trust for unequal split
    (c) Register on Form 17
    However any change cannot apply retrospectively.
  • G_M
    G_M Posts: 51,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    and of course changing the ownership has other implications besides the rent/tax split.
  • anselld
    anselld Posts: 8,721 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    G_M wrote: »
    and of course changing the ownership has other implications besides the rent/tax split.

    Not particularly between married couples.
  • Guest101
    Guest101 Posts: 15,764 Forumite
    anselld wrote: »
    Not particularly between married couples.



    It can if they separate shortly there after, as the recent intention was to have unequal shares
  • cyantist
    cyantist Posts: 560 Forumite
    grade15 wrote: »
    a house is owned by a couple equally and happy together. (no mortgage)
    they rent the house out and get income.


    can one person put all the income on their self assessment form because they are on a lower income tax band?

    We looked into changing the ownership of our BTL recently to make me the sole owner as I was earning quite a bit less than my husband. The cost to do this would have wiped out the tax savings for the next 5 years so it didn't seem worth it.

    However one big reason for this was the cost of changing the mortgage which doesn't apply in your case.
  • anselld
    anselld Posts: 8,721 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    cyantist wrote: »
    We looked into changing the ownership of our BTL recently to make me the sole owner as I was earning quite a bit less than my husband. The cost to do this would have wiped out the tax savings for the next 5 years so it didn't seem worth it.

    However one big reason for this was the cost of changing the mortgage which doesn't apply in your case.

    You could have changed to 99:1 ownership at relatively little cost and without affecting the mortgage.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    http://www.propertytribes.com/live-from-the-judicial-review-t-127626664.html
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