TiC 50/50. If we move to 90/10 via Form 17 will mortgage int still be 50/50 or 90/10?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    TiC 50/50. If we move to 90/10 via Form 17 will mortgage int still be 50/50 or 90/10?

    HI folks, I'm new here, and I am struggling to find a definitive answer to my question above. My husband and I would like to move from 50/50 Tenants in Common on a BTL to something that is more advantageous in terms of tax. We don't know how to crunch the numbers to determine the best future split, because while we understand that expenses eg council tax, repairs, etc will all divided according to the Form 17 future split, does the same apply to the mortgage or does it remain at 50/50 given that we are both jointly responsible for the whole of this loan in the lender's eyes regardless?
    Many thanks, I really appreciate any wisdom on this.

    #2
    From the tax point of view you have to split both income and expenditure in the same way. One person cannot claim all the expenditure and another the income. That includes the mortgage.

    Who actually pays the mortgage is a private matter between you.

    Comment


      #3
      You are both jointly responsible for all of the mortgage from the lender's perspective - it's a joint and several arrangement.
      That has no impact on the tax allowances, which are, as above, split in parallel with the income.

      Note that the lender's terms and conditions may require them to agree to any change in ownership, title or beneficial.
      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
        Clarity at last!! Thank you both so much, I really appreciate your responses.

        Comment

        Latest Activity

        Collapse

        • CGT - when value of house is taken from
          Trading1
          Hi all,

          Hoping you can clarify for me. I bought a house about 8 years ago, and moved out 4 years ago to move in with my wife, and rented my old house out.

          My understanding is if i sell the old house, the CGT is paid on the difference between purchase price, and sale price...
          12-05-2019, 20:28 PM
        • Reply to CGT - when value of house is taken from
          Trading1
          Thanks all, yes I'm aware of the tax changes due next april, so have put the house up for sale already Unfortuntely the market seems to be dead as a doornail !...
          21-05-2019, 20:32 PM
        • legal fees offsett my rental income ?
          alice123
          Hi all , i had some legal fees to pay which were about 1,500 , which were due to the fact that the tenant was suing me over the deposit, and i also had some legal fees in respect of tracing the tenants arrears . I did wonder if i may offest this against my rental income on my tax return (which was...
          21-05-2019, 20:23 PM
        • Higher tax bracket
          someonenew
          I will be a brand new landlord soon and wasn't sure if what I'm doing is correct (best for tax reasons)

          I have two properties

          1) Bought Feb 2017 (£185,000 24% equity) residential for me to live in
          2) Bought May 2019 (£150,000 25% equity) buy to let

          The...
          21-05-2019, 15:10 PM
        • Reply to Higher tax bracket
          jpkeates
          When you are married, you can organise your tax affairs to suit your new situation - finding a good local accountant might be a sensible first step. Or a family solicitor (because you want your wills to be sympathetic and you might want to change how the property is owned.)
          But SDLT will be an...
          21-05-2019, 16:22 PM
        • Reply to Higher tax bracket
          someonenew
          My fiance earns £35,000 so she's not too far from the bracket but we do intend on having children pretty early on.

          I've never talked to anyone about transferring it over to a company, any ideas how difficult it is. I've just paid £5,000 on stamp duty for this property and have a feeling...
          21-05-2019, 16:04 PM
        • Reply to Higher tax bracket
          jpkeates
          Does your fiance earn the same (or more)?

          The most tax-efficient outcome is likely to be to manage the properties through a company, but the costs of moving from where you are now to that position are quite high (but one off).

          It might be worthwhile talking and working it through...
          21-05-2019, 15:58 PM
        • Deed of trust to Ltd company
          Vinkris
          Hello All,

          I’m new to this site/forum so apologies in advance if this question has been asked before.
          i own my current property 100% and it’s on a personal mortgage. Now I want to move from the property due to personal reasons and want to let it out. I want to do BTL via company...
          20-05-2019, 17:11 PM
        • Reply to Deed of trust to Ltd company
          jpkeates
          "BTL via company option" needs some further explaining.
          21-05-2019, 08:36 AM
        • Reply to Deed of trust to Ltd company
          Jon66
          You need to post the terms and conditions of your mortgage for anyone to be able to answer but it is likely you will be breaching the terms and conditions if you don't inform them....
          20-05-2019, 18:21 PM
        Working...
        X