Tax Efficiency

Middlers

I retire in a couple of years with a pension but still intend to work. Our intention is to purchase two houses - one for personal use and one for rental. Would it be more tax efficient to have the main house in my sole name and the other in my wife's sole name (her being a minimal tax payer with no pension). Presumably any income from the rental property would not affect my tax position as it would be in her name. Can anyone see any advantages/disadvantages in doing this please?

dunstonh

Your primary residence has no impact on your personal tax position (except IHT). The investment property obviously has capital gains tax and income tax issues (as well as IHT). It can also reduce your age allowance and remove pension credits if applicable (although pension credits is based on joint finances so how you hold it doesnt matter).

So, there could be advantages.