Uneven rental income split

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    Uneven rental income split

    So the situation is my long term partner (we aren't married) is nearly in the 40% tax bracket and I'm not. We want to split rental income to be more tax efficient. Is the best way to do this to be joint tenants and simply draw up an agreement stating that we are splitting the rental income say 90/10 in my favour?

    Thanks in advance!

    #2
    I suggest you prepare a letter to inform the HMRC Office :

    Dear Inspector of Taxes ,

    We A and B are joint owners of the property at Flat 2, 88 Rosetree Gardens . We have agreed commencing from 6 April , 2017 the rental profit from the property shall be shared 90% to A and 10% to B.

    Yours sincerely ,

    Signed by both A and B .

    Comment


      #3
      Many thanks Gordon

      Comment


        #4
        Yes Im looking at doing the same and I believe that's the correct way (a simple letter outlining the agreement). So the split can be 100%/0% I believe.
        How do the costs for that property get split please? For example do we still have to split the running costs 50:50 or does the lower rate tax payer then offset all the costs too?

        Does the higher rate tax payer have to submit a return for that property if the income is 0% and so zero?

        Comment


          #5
          Is it really as simple as that?

          Comment


            #6
            For an unmarried couple, yes.
            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


              #7
              Excellent!
              Just to confirm, my partner and I are joint owners, so we'll simply get a letter written up.
              She'll declare 100% earnings and 100% costs go on her tax return?
              The tenancy agreement shows both our names.
              Money is paid into joint account - any problems with that?

              Comment


                #8
                The split should probably be 99:1 not 100:0.
                100:0 isn't "joint" anything.
                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


                  #9
                  I've found this article which you may find interesting

                  http://www.ramsaybrown.co.uk/documen...ertyandTax.pdf

                  Comment


                    #10
                    Thanks for the link, so yes I believe that this confirms that its much easier if youre not married! One of the rare occasions where not being married is easier tax-wise. I simply write up an agreement with my partner (not married) to define to uneven income split and that's that? She then files a tax return too.

                    Comment

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