Remortgaging main home to buy property

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  • Remortgaging main home to buy property

    My husband and I have raised a mortgage by remortgaging the property we live in. We are currently buying a flat we intend to let out. We have an offset flexible mortgage. In doing it this way can someone advise me what to bear in mind from an income tax point of view? The property will be only in my name as I am a 20% tax payer and my husband is in the 40% band. I have seen a few comments about how you can own the property jointly but have the income allocated 99%:1% in favour of the 20% tax payer and I am wondering whether this would be a fairer solution for us. Also, would it not work better taxwise if we owned in joint names as when selling in the future we would have our two individual allowances when paying capital gains tax? Or could I gift 50% of the property to my husband before this happens? Many thanks in advance for any advice concerning this situation. We are novices at this. It is OK to use a mortgage on our main residence to fund a 'buy to let' and offset that mortgage against the rental income, isn't it?
    Last edited by Smileyface; 17-03-2010, 14:59 PM. Reason: spelling error

  • #2
    Wrong forum. Repost in TAX.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

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    • #3
      Sorry - wrong forum. Please re-post in the 'Tax Questions' forum. Thank you!
      'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

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      • #4
        Originally posted by mind the gap View Post
        Sorry - wrong forum. Please re-post in the 'Tax Questions' forum. Thank you!
        You're forgiven.
        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
        4. *- Contact info: click on my name (blue-highlight link).

        Comment

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