Rental income to one owner only

DWM345

freesha said:

Surely she is on UC not HB?

Yes, I was generalising, you are correct.

DWM345

"It doesn't matter where the mortgage is secured, the interest can still be considered to be as a result of buying the rental property. Though current regulations mean that the interest payments are restricted to the basic rate, they should still be included on your tax self assessment."

I didn't know that, excellent news. Glad now, that I came on here asking dumb questions.

anselld

Prior to DoT and Form 17 you need to ensure that property ownership is Tenants in Common rather than Joint Tenants.

gwynlas

Please ensure that you havewills updated to identify what happens if either of you were to die. 
Similarly your daughter should also have a will.
I hope your grandchildren are receiving support regarding their issues.

DWM345

Can I just tell Land Registry that my wife owns 99% of the property and I own 1% ?  Then change it back just before we sell it ?

anselld

DWM345 said:

Can I just tell Land Registry that my wife owns 99% of the property and I own 1% ?  Then change it back just before we sell it ?

No.  There are three steps….
 (1) Switch ownership to TIC if not already.  Forms to Land Reg.
  (2)  Draw up and sign DoT specifying ownership.  Lawyer or DIY forms.
  (3). Complete form 17 and submit to HMRC with evidence (ie the DoT)

 Only after all three are done can you start shifting income.  It cannot be done retrospectively.

You can repeat (2) and (3) to change percentages at any time but again, not retrospectively.

sheramber

DWM345 said:

Can I just tell Land Registry that my wife owns 99% of the property and I own 1% ?  Then change it back just before we sell it ?

You haven’t read the links I quoted 

Tenants in common – married or in a civil partnership

If you hold a rental property as tenants in common with your spouse or civil partner then, by default, you are taxed on the rental income equally – 50% on your tax return, 50% on your spouse or civil partner’s tax return.

This is the case even if the agreed ownership split is unequal – for example if the property is owned 60:40 or some other proportion.

DWM345

Ok, if I go through those 3 steps can I give my wife 100% and change back to 50/50 before we sell ?  That way I don't have to include any rental income on my tax return.

sheramber

DWM345 said:

Ok, if I go through those 3 steps can I give my wife 100% and change back to 50/50 before we sell ?  That way I don't have to include any rental income on my tax return.

If you have a joint mortgage you will need to advise the lender of the change of ownership. 

DWM345

The joint mortgage is not on the rental property, it is on our home. If I go 100/00 on the benefici\l element are there any other consquences ? Internet sites all suggest 99/01 but don't say why.