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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3825
Experience:  FCCA FCMA CGMA ACIS
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I am just about to set my current home up as a Buy to Let and

Customer Question

I am just about to set my current home up as a Buy to Let and the rental income would take me into the 40% tax bracket. Can my partner (we're not married) act as landlord and receive the income in her name (tenancy agreement would be in her name too) to avoid the higher rate tax. She is self employed and therefore already uses Self Assessment.
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
If you and your partner owned the property together this would be possible [see next paragraph]. If you yourself own it the situation is not so simple and your tax account would bear 100% of the net rental.
You could convey the property into joint ownership. Normally HMRC would deem any rental income be split 50/50, but by use of a Form 17 procedure you could have it all booked against your partner's tax account. I appreciate that you may not wish to loose half the equity in the building that this process would entail, nor indeed the conveyancing costs.
I am so sorry to have to rain on your parade.
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Customer: replied 2 years ago.

Hi Keith

Thanks for the prompt reply, what is a Form 17 please?

Steve

Expert:  bigduckontax replied 2 years ago.

It is a formal agreement in a partnership as to how profits are to be split. You can find full details and how to complete it on line here:

https://publiconline.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.htmlcontentRoot=repository:///Applications/SpecPersTax_iForms/1.0/17&template=17.xdp

Hope that helps; thank you for your support.

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