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Sam, Accountant
Category: Tax
Satisfied Customers: 14157
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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My partner currently owns the home in which we both live. We

Customer Question

My partner currently owns the home in which we both live. We are not married but will be getting married in 2017. We are planning on buying a another property to let out initially, before living there ourselves in years to come (I am assuming we will have to pay the higher stamp duty). As my partner does not have a private pension the income from this property is intended to support her retirement plans. My partner will retire before me and I am a high earner and therefore eligible for higher tax. Should we purchase the property in joint names or will this impact on the tax she will pay on the property once retired. What would be the implications if we purchased the property in my name (or does neither scenario matter as we will soon be married).
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Expert:  Sam replied 1 year ago.


Thanks for your patience

Yes you are right you will need to pay the higher stamp duty on this purcahse as your partner (soon to be wife) will then own 2 properties

If you make this purchase in joint names - then rental income will be treated as 50:50 now to reflect this fact but also when married - and if you sold in the future then you would at least have 2 x annual exemption allowance on any gain, However you advsie its likely to become the main residence in the future - so it would make no difference whether you buy jointly or just in her name other than whilst rental income exists - you share would be liable at the higher rates so it could be practical for it to be bought in her sole name so that all the rental income is in her name also

However her retiring and potentially moving in here at retirement will change nothing other then seeing rental income cease - if the property were to be sold, then again whilst a joint ownership would see you entitled to 2 x annual exemption allowance - this would see your share liable to the higher capital gains rate on more of any gain -

Its a matter of how you wish to proceed in this case rather then there being any true tax mitigation to better your overall position

Let me know if I can assist further



Customer: replied 1 year ago.
What would be the implication if I bought in my name. Would my parter be able to declare the rental income for herself for tax purposes (once married) or would all the income be classed as mine, or would it be 50/50?
Expert:  Sam replied 1 year ago.


Thanks for your further question - which as in addition to your original question really should be listed as anew post or me offer you additional Q and A time (which I am afraid would incur an additional cost) but as this seems to be your first time on Just Answer, I will on this occasion answer without asking for additional fees.

If you but in your sole name then the rental income is deemed to be 100% yours even once married as her name is ***** ***** the deeds