Paying tax on rent

Ckandb

Hello all,
New here so apologies if this has been posted, had a brief look... I want to rent my house out that I joint share with my husband. I am a 40% tax earner and he is a 0% tax earner. How do we go about paying tax on the rent of our joint property, any idea what rate we would pay?
Thanks in advance for all your help,

Smodlet

I regret I do not know the answer to your question but wished to mention this:

https://www.moneysavingexpert.com/family/marriage-tax-allowance

If your partner is your spouse/civil partner and you do not already do so, he/she can assign their tax free allowance to you. Apologies if this is not news.

This may also be useful:

https://www.google.co.uk/search?q=hmrc+declaring+rental+income&oq=hmrc+declaring+&aqs=chrome.0.0j69i57j0l4.7311j1j7&sourceid=chrome&ie=UTF-8

HTH.

TamsinC

You pay 40%, he pays 0% until he hits his tax limit. It's a 50/50 split. We were in exactly the same situation but reversed. I pay nothing he pays 40%.

You need to be in the 20% bracket for the marriage allowance thing.

G_M

Do you own as Joint Tenants or Tenants In Common?

If you own as TIC, or switch to TIC, specifying that he owns 99% and you own 1%, then the rental income is split between you in that %, and taxed accordingly.

AnotherJoe

Smodlet wrote: »

If your partner is your spouse/civil partner and you do not already do so, he/she can assign their tax free allowance to you. Apologies if this is not news.
.

No, he cant. Only if OP was 20% earner.

TamsinC

G_M wrote: »

Do you own as Joint Tenants or Tenants In Common?

If you own as TIC, or switch to TIC, specifying that he owns 99% and you own 1%, then the rental income is split between you in that %, and taxed accordingly.

Sold it recently so a moot point but we were joint tenants (as married etc) I wouldn't have wanted to go down the 99% him and 1% me route all for the sake of a couple of hundred quid at the end of the year.

G_M

Then you're stuck with paying 40% on half the rent and 0% on the other half.

TamsinC

G_M wrote: »

Then you're stuck with paying 40% on half the rent and 0% on the other half.

Sorry I thought you were asking me not the OP as your post was underneath mine - I have no idea if the OP wishes to do what you suggested

Smodlet

AnotherJoe wrote: »

No, he cant. Only if OP was 20% earner.

Covered in #3.

sheramber

G_M wrote: »

Do you own as Joint Tenants or Tenants In Common?

If you own as TIC, or switch to TIC, specifying that he owns 99% and you own 1%, then the rental income is split between you in that %, and taxed accordingly.

And so is the Capital Gains tax when you come to sell.

00ec25

G_M wrote: »

If you own as TIC, or switch to TIC, specifying that he owns 99% and you own 1%, then the rental income is split between you in that %, and taxed accordingly.

OP
for the sake of completeness the "specifying" referred to by GM means a) drawing up a one line declaration of trust and b) completing a Form 17 and sending both documents to HMRC. Only when HMRC have them can you then split the rental profit in anything other than 50/50 since that is the default for a married couple.

as for the rest there are loads of webpages explaining how property is taxed, the obvious start point by .Gov.uk...

https://www.gov.uk/renting-out-a-property/paying-tax