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  • FIRST POST
    • scruffypooch
    • By scruffypooch 4th Mar 18, 6:55 PM
    • 3Posts
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    scruffypooch
    tax planning?
    • #1
    • 4th Mar 18, 6:55 PM
    tax planning? 4th Mar 18 at 6:55 PM
    Hello. We live in germany but have a house in the uk in both my husbands and my name, which we rent out. My husband pays UK tax on his pension and on the rental income. I dont pay UK tax. We want to sell the house to buy a different one. If we put the new house in my name only will my husbands tax obligation be reduced as he would not be getting any rental for the house ? Presumably because the rental income would be under my name my tax obligation would increase however would I then be able to take advantage of the 11K pers allowance therefore jointly reducing our tax obligation?. When I asked my tax accountant about this he said it wasnt a good idea but didnt expand why. Would it be legal to do this (tax avoidance/tax evasion). Infact even if we do not buy a new house if we changed the current ownership to just my name would the same apply. I would really appreciate some guidance on this
Page 1
    • 00ec25
    • By 00ec25 4th Mar 18, 9:51 PM
    • 6,382 Posts
    • 5,892 Thanks
    00ec25
    • #2
    • 4th Mar 18, 9:51 PM
    • #2
    • 4th Mar 18, 9:51 PM
    your husband is subject to UK tax but you apparently are not, why is that?
    are you a UK citizen/ born in the UK?
    • scruffypooch
    • By scruffypooch 12th Mar 18, 6:35 PM
    • 3 Posts
    • 0 Thanks
    scruffypooch
    • #3
    • 12th Mar 18, 6:35 PM
    tax plannning
    • #3
    • 12th Mar 18, 6:35 PM
    I dont earn anything in the uk. I work in germany and pay german tax
    • 00ec25
    • By 00ec25 12th Mar 18, 6:45 PM
    • 6,382 Posts
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    00ec25
    • #4
    • 12th Mar 18, 6:45 PM
    • #4
    • 12th Mar 18, 6:45 PM
    I dont earn anything in the uk. I work in germany and pay german tax
    Originally posted by scruffypooch
    doesn't really answer the question, you said:
    Hello. We live in germany but have a house in the uk in both my husbands and my name, which we rent out
    if we rent it out then 50% of the rental profits are yours and should be declared in your name

    if you are a UK/EC citizen then you are entitled to a UK personal allowance which may well cover all of your share of the rental profit and thus explain why you do not pay UK tax. However, as you are resident in Germany that makes you a "non resident landlord" in UK tax terms and therefore required to submit a UK tax return - perhaps your accountant does this but you don't understand what he does for you?

    buying another house in your sole name won't alter that position, but may use up the whole of your allowance if your share of the rental profits is currently less than the allowance anyway? Simple number crunching based on you alone and you + husband will answer that question.

    buying in one name means only one CGT allowance when you sell, not the end of the world and there are ways around it when closer to the time.
    • scruffypooch
    • By scruffypooch 21st Mar 18, 11:00 AM
    • 3 Posts
    • 0 Thanks
    scruffypooch
    • #5
    • 21st Mar 18, 11:00 AM
    • #5
    • 21st Mar 18, 11:00 AM
    thank you so much for your help. I was under the impression that half the share of the rental profits should be on my uk tax return but I don't think it was, However, there was something about the UK personal tax allowance so I need to have a look at it again now that I know what I am looking for.

    I really do appreciate your help thank you.
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