How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4808
Type Your Tax Question Here...
bigduckontax is online now

I am married and have a buy-to-let property that is held in

This answer was rated:

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?
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 2 years 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.
You can but try, but be prepared for problems with HMRC over allocations.
Thank you for your support.