Tax on 2nd home income

erigeron

I am  married and have a 2nd property as a buy to let with a mortgage in my name only. 

I pay tax on rent received.
i work part time and receive a small pension tax code 1250. 

My husband is now unemployed, does not get benefits. 
Can I put my husband’s name  on the 2nd property to share the income and tax

I will have to renew mortgage next year but this will be in my name as husband is not earning. 

silvercar

If you add your husband to the deeds, you will need the lender's consent. If you then need to re-mortgage it will need to be in joint names, though his lack of income shouldn't be an issue. BTL mortgages are based on rental income not personal pay.

You can have the beneficial ownership different to the legal status, though I expect hmrc will consider that you are trying to artificially change the ownership just to reduce your tax bill.

Hoenir

silvercar said:

If you add your husband to the deeds, you will need the lender's consent. If you then need to re-mortgage it will need to be in joint names, though his lack of income shouldn't be an issue. BTL mortgages are based on rental income not personal pay.

Personal income matters as is if there's rental void period what funds the outgoings that continue whatever. 

erigeron

Can you explain beneficial ownership and legal status further
thank you 

Bookworm105

erigeron said:

Can you explain beneficial ownership and legal status further
thank you 

@erigeron
legal status means who owns the property - whose name is on the deeds and therefore has the right to sell the property 

beneficial status has a very important distinction - it is who gets the money from the sale or gets the rent from letting the property 

legal and beneficial owners may not be the same physical person depending on what paperwork is in place naming a beneficial owner

as you are legally married then you also need to educate yourself on the difference between legal ownership as Joint Tenants and legal ownership as Tenants in Common. As a married couple, you also need to educate yourself on the need for submission of a Form 17

loofer

Good starting point
https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17