Gift a mortgage free property to my house wife

ileven1225

If someone could answer my remortgage question, it might be a duff question but it would be really appreciated! Thanks

ileven1225

sevenhills wrote: »

Married Couple’s Allowance could reduce your tax bill by between £345 and £891.50 a year.


https://www.gov.uk/married-couples-allowance

do you mean Marriage Allowance? The married couples allowance is for couple born before 1935.

LilElvis

ileven1225 wrote: »

do you mean Marriage Allowance? The married couples allowance is for couple born before 1935.

Yes, I believe they intended to link to marriage allowance.

https://www.gov.uk/marriage-allowance

markin

Can she not just take the income without owning, or would you have to set up a company as her as director leaving no profit.

[Deleted User]

ileven1225 wrote: »

If someone could answer my remortgage question, it might be a duff question but it would be really appreciated! Thanks

As long as the rental property wipes its own face then I don't think it will make any difference.

G_M

ileven1225 wrote: »

If we chose option 2 and the property will then have shared ownership between myself and my wife, will it affect the remortgage this property in the future? I have good credit score and reasonable salary. My wife's credit score is low and has no salary (may be some rental income). For the remortgage purpose, if we would like to remortgage the property to free some cash, would I rather keep the ownership to myself only to meet lender's criteria Or it doesn't make much difference between sole and shared ownership in this instance?

Post query on the mortgage board here, or see an independant mortgage broker.


But if you jointly own, you'll need a joint mortgage I believe. Your combined incomes would be the basis for eligibility amount, but any adverse entries on either of your records might have a negative affect.

00ec25

markin wrote: »

Can she not just take the income without owning, or would you have to set up a company as her as director leaving no profit.

neither option would work for tax purposes

as already discussed you cannot pass income to a wife who has no entitlement to it. The most tax avoidance measure possible for a married couple and therefore covered by a raft of "settlements legislation" aimed at preventing such an obvious ploy

I'm not even going to start to explain why a company would not work as I doubt you know what you mean

ileven1225

I understand all options now, apart from option 3. Thanks for everyone's help so far!
If someone can comment on option 3, it would be really helpful! I found the link below showing option 3 is allowed?
https://www.ts-p.co.uk/news/rental-income-should-the-husband-or-wife-receive-it

Sole legal owner
The legal title might be in the sole name of one of you. This is quite usual if the property is mortgaged, if one of you is a higher earner, or perhaps it was owned and occupied by one of you before you met. It is still possible to declare rental income as belonging to your partner, so as to make use of their personal allowance and marginal tax rates. The declaration of trust should be signed by both of you and will state that although the legal title is in one partner’s name, they hold the net equity in the property for the benefit of the other partner in whatever shares are agreed.

Thanks everyone in advance!

ileven1225

thanks in advance if anyone can answer the question!

ileven1225

thanks for everyone who can answer the last question on the top of this topic