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£1000 tax break on property income - details
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leicesterluke
Posts: 1 Newbie
My wife and I are just about to buy a flat as an investment. With the recently announced tax break of £1000 a year of income from property I am thinking about changing the deeds before we complete. At the moment it will be mostly owned by my wife so it is tax efficient as I am a higher rate tax payer and my wife isn't. I was wondering if we should change the deeds so I can earn the £1000 from it and my wife earns the rest and can claim the expenses against her "share". Flat will have rental of about £6/6.5k a year and after mortgage and ground rent should hopefully leave us £3/3.5k gross "profit". is it that simple? Anyone have any idea about this?
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What £1,000 tax break? The one for people who let through Air BnB?0
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Also I would guess expenses would be apportioned using the same ratio as the income was.Don't listen to me, I'm no expert!0
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Read these links https://forums.moneysavingexpert.com/discussion/4930313 before starting in the landlord business.0
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Have you got a reference to this tax break ? Not one I've heard of or seen discussed in this forum.0
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AnotherJoe wrote: »Have you got a reference to this tax break ? Not one I've heard of or seen discussed in this forum.
Presumably this one
http://www.moneysavingexpert.com/news/protect/2016/03/online-sellers-and-room-renters-given-1000-tax-breaks
There will be a £1,000 allowance for 'property related income'.
The new allowances mean that from April 2017 you won't have to declare the first £1,000 earned through each source. Those who earn more than £1,000 through either source "can benefit by simply deducting the allowance instead of calculating their exact expenses".
You'd have to look at the detail to see whether or not the OP's jiggery pokery would work.:)0 -
leicesterluke wrote: »My wife and I are just about to buy a flat as an investment. With the recently announced tax break of £1000 a year of income from property I am thinking about changing the deeds before we complete. At the moment it will be mostly owned by my wife so it is tax efficient as I am a higher rate tax payer and my wife isn't. I was wondering if we should change the deeds so I can earn the £1000 from it and my wife earns the rest and can claim the expenses against her "share". Flat will have rental of about £6/6.5k a year and after mortgage and ground rent should hopefully leave us £3/3.5k gross "profit". is it that simple? Anyone have any idea about this?
Dear me......0 -
Presumably this one
http://www.moneysavingexpert.com/news/protect/2016/03/online-sellers-and-room-renters-given-1000-tax-breaks
There will be a £1,000 allowance for 'property related income'.
So not applicable to the OP at all then unless they plan to rent it out by the day?
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