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bigduckontax, Accountant
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UK Property Tax question ================== Scenario is as

Customer Question

UK Property Tax question
==================
Scenario is as follows:-
My wife and I own a number of BTL properties (6) all in the UK. I have always put the profit\loss in my name only for the last 10 odd years in my personal self assessment forms.
I have recently learned that I could have put some of the tax liability in my wife's name since she has always had a lower tax bracket than mine. All our properties have been in joint names right from the outset.
Can I still do this?
How can I do this in the self assessment forms?
Can I backdate this?
How long can I backdate this?
Is this something you could do (or know somebody who could)?
How much would something like this cost?
Are there any risks involved in doing this?
Thanks in advance.
Ket
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello Ket, I'm Keith and happy to help you with your question.
To answer your question In turn:
You can still do this. HMRC will normally treat you as joint tenants, 50/50. If you make the [pair of you tenants in common then there is no problem. Make sure you have an agreement in writing between to two of you to that effect in the event of some future inquiry. Here is an explanation from Taxcalc Accounting Web:
'If they own the property as joint tenants, then the ownership of the property is equal and form 17 cannot be filed. Income must be split 50:50.
If they own it as tenants in common, then they can file a form 17 IF the actual ownership is not a 50:50 split and HMRC will want proof of this - eg copy of the deed of trust showing this. You can't just split the income in a different proportion to suit your tax position.'
You merely reduce the rental income on your self assessment form and your wife will have to self assess also and do ditto on her form.
This can only be backdated, but only for 60 days.
Your local high street accountant can do this for you and act on your behalf with HMRC. Just Answer protocol does not permit me to make specific recommendations on such a matter.
It should not cost you much above GBP 100, but might well be more these days.
There is basically no risk in this procedure, countless married couple landlords indulge.
I do hope I have helped you with your query.
Customer: replied 2 years ago.

Thank you Keith.

By the sounds of it I cannot claim for the 10 years that I have missed out on this?! Cry

Do we need to fill in a form 17 then?

With the following statement...."You merely reduce the rental income on your self assessment form and your wife will have to self assess also and do ditto on her form." Does that mean I split the income 50:50, and also the expenditure 50:50 between the two self assessment forms?

Thanks in advance,

Best regards,

Ket

Expert:  bigduckontax replied 2 years ago.
Unfortunately Ket you have dipped out on a claim for earlier tax years.
It's always a good idea to do a form 17 procedure; here is the Gov UK advice:
'Use form 17 to request the way you and your spouse or civil partner are taxed on your actual entitlement to income from jointly held property.
Do this by making a joint declaration of unequal beneficial interests and submitting it to HM Revenue and Customs.'
You can find full instructions at this web site:
https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17
Yes you would do this 50/50 split on your self assessments as your surmise unless you submit a form 17 to support a different division.
Please be so kind as to rate me before you leave the Just Answer site.
Customer: replied 2 years ago.

Thanks for your help, last question - would we both need to fill this form 17 out separately?

Expert:  bigduckontax replied 2 years ago.
The Gov UK web site says the form 17 is a joint declaration so presumably you both sign the same form.
Please don't forget my rating.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3385
Experience: FCCA FCMA CGMA ACIS
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Expert:  bigduckontax replied 2 years ago.
Thank you for your support.

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