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Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Firstly, when you left the UK originally did you complete a Form P85 and send it to the Inland Revenue as it was then? If you did not you should do so immediately, but now, of course, to HMRC. Fortunately there is no time limit as to its submission, it is available on the web and can be filed on line. On receipt that Department will classify you as non resident. On return to the UK advise HMRC by letter of your return. That Department will then split the returning year into two portions, one non resident and the other resident.
Your suggestion to use your wife's personal allowance as well as your own is a common method of tax avoidance. In theory, if you can show that she has a substantial managerial input into the property letting business this can be done, but a much more secure way would be to transfer half your holdings to her. Inter spousal transfers not involving consideration do not attract Stamp Duty Land Tax (SDLT) so there will be only the conveyancing charges to consider.
I do hope that you have found my reply of assistance.
It all depends upon the agreement of the HSBC to a transfer of part or all of the mortgage agreements. They may not be prepared to change the position. You might have to seek another lender and pay off the existing charge. This game may not be worth the candle just to be able to use your wife's personal allowance as it would be an expensive exercise. I am so sorry to have to rain on your parade.
Remember you can always get your wife to give you 10% of her personal allowance anyway.
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