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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My wife and I are looking into letting our only house and

Customer Question

My wife and I are looking into letting our only house and rent another one to live in.
We pay join repayment mortgage. I am employed with salary > 100K and this is our only income. My wife is not working at all. The estimated rent we could get for our house would be circa £2,000 a month,and the house we are planning to rent would be £2,500 a month. Is it possible that all income from our property rent would be of my wife's, as apparently she has her free allowance and she is lower rate taxpayer. Are there any other tax considerations we should be aware of? Many thanks.
Submitted: 6 months ago.
Category: Tax
Expert:  TonyTax replied 6 months ago.

Hi.

The default HMRC position for the division of rental income between a married couple is 50:50. If the property is actually owned in proportions other than 50:50 and HMRC are informed through the submission of a form 17, then the rental income will be split in proportion to the actual ownership.

If and when you sell the property in the future, then part of the gain may be subject to capital gains tax. Take a look at HS283 for more information on CGT and the main residence.

I hope this helps but let me know if you have any further questions.

Expert:  TonyTax replied 6 months ago.

Hi.

I'm just following up to find out if my answer helped or if you have any further questions.

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