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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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We have taxable letting income from 2 properties heldd in Joint

Resolved Question:

We have taxable letting income from 2 properties heldd in Joint Names. In previous years we have always reported the net income as shared 50:50 between myself and my wife.
My wife has no other income whilst I pay tax at the highest marginal rate of 45%.
Is it possible to change this so that my wife receives all of the net income to take advantage of her tax allowances so we pay less tax on it. Can we simply decide to do it even if the properties are both held in joint names and we have previously reported the income as joint for a number of years?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Unless the property is owned in proportions other than 50:50 and HMRC are informed by the completion and submission of a form 17 to them, the rental income will be assessed on a 50:50 basis by default. As the form says, if the property is not owned in unequal shares, the rental income cannot be split on an unequal basis simply to achieve a tax advantage. You would need to put the properties into your wife's name for all the rental income to be assessed to tax on her. I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Tony, Thanks that answers my question and is the answer I expected I suppose. I was just checking because this year it makes quite a difference. Cheers. Mike
Expert:  TonyTax replied 1 year ago.
Thanks.
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