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i am letting a house i have inherited from my parents. i am

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i am letting a house i have inherited from my parents. i am getting a buy to let mortgage to do it up then renting it out. i earn about 46000 ayear and my wife is ahousewife and mother and dosnt earn . the property is in my sole name and the mortgage application is in my sole name. someone told me i should put everthing in joint names with my wife for tax purposes. would you recomend this
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Well, you can do this in which case you and your wife would be joint tenants, the legal term for owners in such circumstances. You would be deemed to owe the property 50/50 thus half the net rentals would accrue to each of you. If your wife could be shown to be exclusively responsible for the management of the property it might, and I only say might, enable a greater proportion than the 50/50 split to be achieved. HMRC, however, tend to view such arrangements with a very jaundiced eye.
There is another solution, put the whole house in your wife's name and then all the income therefrom would be on her ticket. However, there is a risk; if the relationship subsequently fails there could be expensive consequences.
I do hope I have been able to throw some light on your situation.
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site.

Thank you for requesting I answer your question.

There are advantages for owning the property in joint names that is giving you rental income.

2 lots of gains allowance when you sell it.
Mitigation of taxation in terms of income tax and capital gains tax, especially when one person is on higher rate taxation.

I would recommend you condiser this option favourably.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4941
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Expert:  bigduckontax replied 2 years ago.
I see another expert has confirmed my original guidance.
Expert:  taxadvisor.uk replied 2 years ago.
Please note these are two different answers.

I have not endorsed the other expert's guidance as implied in his posting.
Expert:  bigduckontax replied 2 years ago.

Actually the other expert has, but added some additional information.

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