If you live together with your spouse or civil partner, we normally treat income from property held in your joint names as if it belonged to you in equal shares and tax each of you on half of the income, regardless of actual ownership."
If you wish this to be taxed on a different basis (known as actual basis) i.e. 60:40; 80:20 etc .etc. then you need to complete a Form17 and also provide evidence in a form of a declaration or deed that your beneficial interests in the property are unequal.
More information on this and a link to download Form 17 is here
I am also providing a link to some guidance notes from ACCA here
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.
so I am at the 40% my wife is not the £175 profit would be taxed 50/50
me at 40% my wife at 20%
Kevin, thanks for your prompt reply.Unless you file a Form 17 to apportion rental income/profit on an actual basis, HMRC would treat this income on a 50:50 basis and your income tax would be at your marginal rates.I hope this is helpful and answers your question.