my wife earns only 120 pounds per week. would we be able to book the income from the rental of the house as hers.
if so could we deduct for expenses and if so would I need to transfer all cash dealings into her name?
this is great thanks. just 1 last clarification
the house is in my name but could I transfer it into my wife's name purly for the purposes of tax planning?
You can certainly do that. Transfers of assets between the parties to a marriage who are living together are tax neutral.However, if the property in question is in your name only and it been your main residence, you may dilute or lose your entitlement to main residence relief and letting relief if it has been let by putting it in your wife's name and then selling it later on.
I have had the house for approx. 10 years and for the first 5 it was let using rent a room. for the last 5 years not let.
bought for 90k and probably worth 100k now
would transfer to my wife be a disposal or would she pay capital gains on difference between selling price and 90k
I do not have any other assets that are subject to cgt - all shares in sip or isa
if we were to sell the property and the gain was 20k could we make it 50 50 owned and again pay no tax. if so that all works out