Rental property related expenses

Discovery_Shropshire

My wife and I rent out a property and split the profits 50/50. She doesn't work now, so couldn't pay any mortgage or other related costs for the rental property.

As the sole earner can I offset all expenses against my share of the profits, as I would have to pay the mortgage on my own if the property didn't rent for a month or 2?

Jeremy535897

If you own the property 50:50, you declare the income, expenses and finance costs equally between you. If you own it in unequal shares, or change the ownership to unequal shares, you are still taxed on the assumption it is owned 50:50 unless and until you submit a form 17 to reflect the true ownership.

If you were to change the ownership to unequal shares, you may have a stamp duty liability based on the amount of mortgage transferred.

tasticz

I think you can create a trust and fill a hmrc form (not sure which one)

Jeremy535897

tasticz said:

I think you can create a trust and fill a hmrc form (not sure which one)

You mean a declaration of trust to turn a joint tenancy into a tenancy in common to alter the shares from 50:50 to something else, as per my original response, and complete a form 17.