Who’s name to put buy to let property in?

tiptoes27

Hello
My husband got wind that the might be made redundant so we downsized our family home to release some money. The redundancy has now happened and my husband will take his company pension soon (he is 61). We plan to buy a flat to rent out to give us some income and are trying to decide if it is best to put it in my name only. The reason for this is that I don’t have very much income so could use my personal tax allowance against the rental income. I don’t have a company pension but will get a full state pension in 6 years time. Are there any drawbacks to us buying the property in just one of our names?
Thanks in advance

Dazed_and_confused

What will he do when (if ) you run off with the milkman??

Pennywise

tiptoes27 wrote: »

Are there any drawbacks to us buying the property in just one of our names?

You'll only get one capital gains tax exemption when you come to sell it unless you transfer it into joint ownership at some point in the future.

aztechfire

I'm also interested in the point about Joint, or Single property ownership, and the Rental Income Tax implications :

- if the Property is Jointly owned by a (Mr.&Mrs.), can the Rental Income be attributed only to Mrs. ? (- as the non-taxpayer !)

or - if the Property were to remain in Joint ownership, and the Tenancy Rental Agreement itself be completed only in the name of Mrs., would that allow the Rental Income to be attributed only to Mrs. (- as the non-taxpayer) ?

tiptoes27

aztechfire wrote: »

I'm also interested in the point about Joint, or Single property ownership, and the Rental Income Tax implications :

- if the Property is Jointly owned by a (Mr.&Mrs.), can the Rental Income be attributed only to Mrs. ? (- as the non-taxpayer !)

or - if the Property were to remain in Joint ownership, and the Tenancy Rental Agreement itself be completed only in the name of Mrs., would that allow the Rental Income to be attributed only to Mrs. (- as the non-taxpayer) ?

Good question!

00ec25

aztechfire wrote: »

I'm also interested in the point about Joint, or Single property ownership, and the Rental Income Tax implications :

- if the Property is Jointly owned by a (Mr.&Mrs.), can the Rental Income be attributed only to Mrs. ? (- as the non-taxpayer !)

or - if the Property were to remain in Joint ownership, and the Tenancy Rental Agreement itself be completed only in the name of Mrs., would that allow the Rental Income to be attributed only to Mrs. (- as the non-taxpayer) ?

Answers:

Q1 ONLY by using Form 17

Q2 legally? No

nomorekids

IMO, buy the property in joint names. Any rental income and expenses would then be 50/50 if you then didn't then do Form 17 with Declaration of Trust (which you can do yourselves at no cost btw). This changes the beneficial ownership to anything you want, 60:40 90:10 99:1 if you want. Submit both with whatever shares you want to inland revenue within the time limits for the new beneficial ownership shares to apply. The shares you pick now are not set in stone and can be altered back to 50:50 or whatever at a later date so you both take advantage of the capital gains allowance for selling for example.


Google "Form 17" "Declaration of Trust" x