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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 6300
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I jointly imhereted a property with my brother in May 2001,

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I jointly imhereted a property with my brother in May 2001
JA: Have you talked to a tax professional about this?
Customer: no
JA: Anything else you want the Accountant to know before I connect you?
Customer: Yes I brought my brother out of his half and property was transfered into my name in march 2003 since then the property was rented out and i divised the income between me and my wife both showing 50% of income on our tax returns I want to tidy my financial affairs and need to know is there a problem with this situation
JA: Which tax year are you filing for?
Customer: I have shown the income this way on my and my wife's personal tax returns since May 2001

Hi, my name is ***** ***** I am a Chartered Tax Advisor.

Please can you let me know why you split the rental income between you and your wife? Is she a joint owner of the property?

Kind regards, Peter

Customer: replied 2 months ago.
No I just thought that as husband and wife it could be done this way. It is only recently that i became aware it could be a problem
Customer: replied 2 months ago.
No
Customer: replied 2 months ago.
Awaiting answer
Customer: replied 2 months ago.
Have you any advice how i should proceed
Customer: replied 2 months ago.
Thank you I will end conversation

Thank you for your question.

If the property is not jointly owned and is in your sole name only, then you are responsible for paying tax on any rental income arising. You can't split this income 50:50 with your wife if she does not have a beneficial interest in the property.

You need to come clean with HMRC and make a voluntary disclosure. More information on this can be found here

https://www.gov.uk/government/publications/let-property-campaign-your-guide-to-making-a-disclosure/let-property-campaign-your-guide-to-making-a-disclosure

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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 6300
Experience: FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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