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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13887
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Hi Im a higher rate tax payer (mainly PAYE) and have always

Customer Question

Hi
Im a higher rate tax payer (mainly PAYE) and have always completed a tax return. My wife does not earn (housewife) and has never submitted a tax return.

We are currently renting our main residence(in joint names) out while I work elsewhere in the UK. If I fill form 17 in can all the income be declared in my wifes names? Will she then need to ring the tax office to submit a self assessment.

We've also this year started a furnished holiday let, currently with very little income. This is also in joint names, can I add this to the form 17 as well?

Any info greatly appreciated
Submitted: 3 years ago.
Category: Tax
Expert:  Sam replied 3 years ago.
Hi

Thanks for your question

As these properties are jointly owned - then I am afraid UNLESS there is evidence to support the fact that your wife contributed more than half of the purchase, then I am afraid HMRC will only accept this income as 50:50

The only other way around this, is if the deeds are transferred into her sole name - then she can be treated as 100% owner and have the income treated as 100% hers.
Thanks

Sam
Customer: replied 3 years ago.

Thanks Sam


So what is the new form 17 all about then? When would it be appropriate to use this?


Regards


Iain

Expert:  Sam replied 3 years ago.
Hi Iain

Thanks for your response

Form 17 is where there is evidence that one spouse has a greater ownership than the other whether it be property or investments - but because HMRC automatically treat all spousal income as 50:50- this form allows that position to be declared - so the split can be made to reflect the true position.

In your case - I would imagine its your income that has permitted the purchases - so this would work against you - should you declare the true position, so your only recourse is to actually get the deeds transferred into your wife's name - so she legally is the sole owner - and can be treated as 100% considered for the income of these investment properties.

Thanks

Sam

Customer: replied 3 years ago.
Thank you. So if one property makes a profit and the other a loss can they be netted off against each other before including on our tax returns?
Expert:  Sam replied 3 years ago.
Hi Iain

Thanks for your new question

I am afraid as per Just Answer policy, as this is now branching into a new topic, this must be listed as a new question (or a bonus added after rating/accepting this one) Just let me know.

Thanks

Sam

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