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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 4973
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Can you advise us please? We are planning to purchase to rent

Resolved Question:

Can you advise us please? We are planning to purchase to rent - my husband is a higher rate tax payer and I was recently made redundant and subsequently retired on grounds of ill health with a small personal pension. I have been told I can be the main owner of the property and husband can be 1% owner. Is this correct?
Submitted: 1 year ago.
Category: Tax
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your question.Normally, a property in joint names is treated by HMRC as being owned 50:50 and you are both taxed on income arising and gain made on 50:50 basis.If you wish this to be any different e.g. you having 99% and your husband 1% then you need to complete HMRC Form 17 that can be downloaded here. This is a declaration of financial interest in joint property and income.https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17The answer to your question is YES it is correct that you can vary the ownership split by making a declaration on Form 17. 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.
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Customer: replied 1 year ago.
Brilliant, we are new to this - also as another question is ....I am currently a sole trader - doing a max of 6K earnings (hopefully) would it be better to be a company and include this property in it?
Expert:  taxadvisor.uk replied 1 year ago.
Thank you for your reply..I would stick to sole trader and treat the property investment as by individuals and not company... companies do not get capital gains allowance when property is sold whereas individuals get it.. in your case 2 lots at £11,100 (based on this tax year).I hope this is helpful and answers your question.
Expert:  taxadvisor.uk replied 1 year ago.
I thank you for accepting my answer.Best wishes
Customer: replied 1 year ago.
Again thank you - all very scary as neither of us have done anything like this before and we are keen to do things correctly and to pay tax required. As husband has a local govt. post and keen to follow things correctly.
Expert:  taxadvisor.uk replied 1 year ago.
It was my pleasure..
Best wishes.

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