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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 7107
Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
Type Your Tax Question Here... is online now

My wife and I own a buy to let. I declare the income on my

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my wife and I own a buy to let. I declare the income on my tax return. it occurred to me that my wife should declare half the income, however we both earn around the same amount. will this affect the CGT due when we sell it
JA: Which tax year are you filing for?
Customer: 2018-2019
JA: Anything else you want the Accountant to know before I connect you?
Customer: don't think so

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

You should correct the situation of declaring rental income equally in your respective tax returns.

When you sell your property you would claim two lots of gains allowance against the gain made otherwise only one gains allowance is available.

My aim is to give you a professional service. I hope this is helpful and answers your question.

Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave JA today. If you need more assistance, please use the reply box below and let me know. It has been my pleasure to assist you with your question. and 2 other Tax Specialists are ready to help you
Customer: replied 6 months ago.
Your response was not accurate. I checked with HRMC and so long as the tax due was fully paid we can claim both allowances. please could you refund my £5

Thank you for your reply.

I wonder if you told HMRC that although the property is owned jointly, income is declared 100% by one owner and not split 50:50.

I recommended to address this issue of showing rental income 50:50 and then you claim 2 lots of gains allowance to overcome any enquiries made by HMRC if they were to check a gain but no desclosure of rental income.

I hope this is helpful.

Customer: replied 6 months ago.
I did explain exactly that . They told me so long as 100% of the due tax was paid and so long as the deeds proved the property was jointly owned then both allowances could be claimed

Thank you for your reply.

I don't think my answer was inaccurate. I was making you aware of the fact jointly owned property should have rental income shown equally by both spouses and not 100% by one. This could lead to issues with HMRC.

Many thanks

Customer: replied 6 months ago.
ok I agree that's how it should work but HRMC assure me there would be no issue claiming both allowances. I guess to put it right they would have to give me a tax credit and my wife a tax bill. we both earn roughly the same amount so there is little point. Anyway thanks

Thank you for your reply.

Best wishes