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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4094
Experience:  FCCA FCMA CGMA ACIS
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I am married and have a buy-to-let property that is held in

Customer Question

I am married and have a buy-to-let property that is held in my name only. For many years I have been paying tax on the entire taxable income individually but, as a higher rate tax payer, now wonder whether my wife could pay tax on half of the income on the basis that we share the income benefit?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to be able to help you with your question.
The safest way to do this from an income viewpoint is to transfer the ownership into a joint tenancy so you will each own 50/50. Then only half the rental will fall to you.
Alternatively form a company, transfer the house to the company and pay your wife a salary from the company to reduce the rental income to zero.
In theory you could allocate part of the income top your wife if she manages the property, but this is fraught with problems with HMRC over the level of support she provides.
I do hope that my reply has shown you a way forward in this matter.
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
OK thanks Keith, I guess the fact that we are married does not permit me to arbitrarily allocate half of the income from the property to my wife which is a pity.
Expert:  bigduckontax replied 1 year ago.
You can but try, but be prepared for problems with HMRC over allocations.
Thank you for your support.