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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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I live in Scotland, I'm married and have 2 children. I was

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I live in Scotland, I'm married and have 2 children. I was a full time mum for nine years. I have worked part time since my youngest started school (self employed). Since working I have not earned enough to pay income tax, I possibly should be paying national insurance now but I haven't paid any since becoming self employed. My husband payes higher rate tax (40%) he pays into a works pension and pays high national insurance. I am 48years old and my husband and I have decided to buy a flat to let. We have saved for 2 years for a deposit and have now put an offer on a flat we like, it is due to close on 31 March to avoid the new Scottish 3% tax. The idea was to have the flat as my pension. However I'm now being told that as my husband pays 40% tax we may not get full tax relief on the mortgage. We need to buy the flat in joint names to get the mortgage but can I treat it as my income only for tax purposes? Kim
Thank you for your question… HMRC approach when the property is in joint names is .. “If you live together with your spouse or civil partner, we normally treat income from property held in your joint names as if it belonged to you in equal shares and tax each of you on half of the income, regardless of actual ownership. Please complete this form if you want to be taxed on your actual shares (known as`actual basis'). You will also need to provide evidence that your beneficial interests in the property are unequal, for example a declaration or deed.” If you wish to change the beneficial interests in the property to some other ratio then you need to complete Form 17 and support that ratio by means of a declaration or deed of trust. You may wish to clear with the lender that they have no objection as the mortgage would have been given on the basis of joint income. You can download and complete form 17 here I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond. Please only rate my answer if it is acceptable.
Customer: replied 2 years ago.
Thank you, ***** ***** show this answer to my husband when he gets home and will decide to download the form 17 then. Kim
Kim, thank you for your reply.I hope my answer is helpful.If there are no more issues, I will appreciate if you would kindly rate my service/accept the service I have provided before you leave the site, to ensure I get credited for it by Just Answer. and other Tax Specialists are ready to help you
I thank you for accepting my answer. Best wishes