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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5141
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Hi, My wife and I have a BTL investment residential property

Customer Question


My wife and I have a BTL investment residential property which we were making a loss on monthly, for the first 3 years until the mortgage rate changed and we are now making a profit monthly after allowable deductions (and are now in profit overall since we started the BTL (we lived in the property for a number of years before this). The property is in both our names and the rental payment is made into my account. My wife is not in employment at present, as she is a full time mum, so she does not use any of her tax free allowance.

I am looking to establish what requirements there are to submit tax returns and whether tax is payable, on the basis that the income from the property is less than my wifes personal allowance. Does this count ? I would very much appreciate your advice on this. Many Thanks. Stuart
Submitted: 4 years ago.
Category: Tax
Expert: replied 4 years ago.

Hello and welcome to the site. Thank you for your question.

You say the BTL property is now giving you a profit after allowable expenses. Most common reasons for needing to fill in a tax return include income from property of
- £10,000 or more before deducting allowable expenses or
- £2,500 or more after deducting allowable expenses.

As your wife does not pay tax through a PAYE code she will need to complete a tax return if all of the following apply:
- she has income to declare, for example income from savings, trusts or abroad, rental income from land or property
- her total income exceeds her total allowances and reliefs
- she has tax to pay on this income.

Based on information provided she does not meet all requirements and therefore she does not have to complete a tax return.

More information on this can be found here - look at

- Who needs to complete a tax return


- If you don't think you need a tax return


I hope this is helpful and answers your question.