Renting House I Own, but Rent Paid to Wife

Scr00ge

Gorgeous_George wrote: »

From HMRC (clicky)...





GG

Thanks GG, but doesn't this mean there is also really no need to gift the asset to the spouse... as reading this, it almost seems as if the asset can be claimed to be jointly owned (or based on any percentage split)??

Debt_Free_Chick

Scr00ge wrote: »

Thanks GG, but doesn't this mean there is also really no need to gift the asset to the spouse... as reading this, it almost seems as if the asset can be claimed to be jointly owned (or based on any percentage split)??

I don't read it that way ....

"Married couples and civil partners can, in certain circumstances, ask to be taxed on their actual entitlement to income from jointly held property."

From what you say, this property isn't jointly held, though - it's held solely by you.

Now ... if it were jointly held i.e. your wife's name were on the deed, then the rent would be split 50/50 between you and you would each put half on your respective tax returns.

The HMRC link is saying that you can make a declaration jointly to split the income differently eg 70/30. Note, it says "in certain circumstances".

If you are going to split it differently, it ought to be because you own the property in different proportions. And you ought to have evidence of this.

Scr00ge

Debt_Free_Chick wrote: »

I don't read it that way ....

"Married couples and civil partners can, in certain circumstances, ask to be taxed on their actual entitlement to income from jointly held property."

From what you say, this property isn't jointly held, though - it's held solely by you.

Now ... if it were jointly held i.e. your wife's name were on the deed, then the rent would be split 50/50 between you and you would each put half on your respective tax returns.

The HMRC link is saying that you can make a declaration jointly to split the income differently eg 70/30. Note, it says "in certain circumstances".

If you are going to split it differently, it ought to be because you own the property in different proportions. And you ought to have evidence of this.

Thanks DFC...

Now I read it again, I see what you mean. If I were to add my wife to the deeds, I wonder whether I could then split the income in a 90/10 proportion. I would have thought it doesn't matter about having evidence as I could gift any amount to my wife or vice versa at no tax cost.

Gorgeous_George

Or transfer it all and save the max.

GG

SquatNow

How much do you think I'll get for reporting the OP to HMRC?

Gorgeous_George

SquatNow wrote: »

How much do you think I'll get for reporting the OP to HMRC?

Nothing. The OP is looking for a way to pay less tax legally. As a 40% taxpayer, maybe he pays enough already?

GG