Joint ownership single landlord contract

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    Joint ownership single landlord contract

    We are married and have joint ownership of a couple of houses. Up u til now we have written our tenancy contracts as jointly named landlords. I now work self employed and now have a lower taxable income so want to know if i write our future contracts with me as the landlord only can i declare all of the rent income on my tax return to avoid my wife paying higher rate on it? Thanks

    #2
    Only one of joint owners needs to be named as Landlord. Tax is down to beneficial interest, form 17 etc. Not naming one doesn't get rid of their entitlement to income nor need to be taxed on it.
    I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

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      #3
      The landlord is whoever is named as the landlord and they receive all of the income.

      The trick is that income follows beneficial income, not "income", so if your wife benefits from the income indirectly, she's still liable for the tax.
      It's quite possible for a husband and wife to have separate financial affairs, so it can be done - it just depends how it's set up.

      You should speak to an accountant to get the most HMRC sympathetic structure in place.

      A sensible approach might be to run the business via a trust (which can have its own tax return).
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        Beware the tax rates for discretionary trusts and accumulation trusts are 45%

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