Decreasing tax liability

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

    Decreasing tax liability

    Hello all,
    I am in a situation where my tax liability will change in jan and I will be 20 K access of 20% tax bracket and fall into 40%. My husband is in 20% bracket and earns around 11 K. Please can you let me know if there is a way to transfer income to my husband form BTL rental income. How do I go about it and how much can it cost. I have 4 BTL properties. Thank you. Kate

    #2
    The only way (that isn't quite complicated) to share the income is if you are joint owners of the property in some way.
    And it isn't simply a paperwork transaction, the ownership would be real.
    So, the first question is, do you both own any of the properties and if no, are you prepared to give up some of the ownership?

    If there are any mortgages on the properties that can complicate things significantly.
    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


      #3
      Transfer all four into his name. If you think that might end badly, then don't do that.

      As said if there are mortgages that is a problem.

      Comment


        #4
        jpkeates yes we own all properties jointly. I am happy to give my part of ownership to my hubby. But we do have mortgages on 3 of the properties out of 4 whose rent is the lowest of all.

        Comment


          #5
          I'm not sure how to follow up here given that my first comment is still held in the dreaded "unapproved"

          Comment


            #6
            Originally posted by Kate foster View Post
            jpkeates yes we own all properties jointly. I am happy to give my part of ownership to my hubby. But we do have mortgages on 3 of the properties out of 4 whose rent is the lowest of all.
            If the properties are owned jointly (and I'm assuming that you are joint tenants - rather than tenants in common), you should almost certainly already be splitting the income (and expenditure for tax purposes) in half.

            To change that, to shift a greater proportion to your husband, you would have to change the ownership to be tenants in common - so you both own a defined share of the property. Your mortgage lender is likely to prohibit that, which makes the process impossible.

            If they don't (and for the property that isn't mortgaged), once that's done, you can use a trust deed to assign ownership of the property as you wish. So, possibly, 99:1 in favour of your husband. There's a special mechanism (form 17) to notify HMRC of the change.

            That's a standard process that most solicitors will handle routinely.
            You can change the proportions when it suite you (for disposal for example).

            There are issues with the process - ownership is really transferred, and it affects what happens if either of you die, and more immediately if you divorce.
            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

            Latest Activity

            Collapse

            • Reply to Any property tax experts you can recommend please?
              by Trevor62
              Thank-you for the link.

              Well my issue is Tax & Assets.

              Firstly, I am in the process of building a house in my side garden, when complete I will own two properties.

              Will I have to pay stamp duty for the new build?

              Because I am an old dad and my...
              19-05-2022, 19:44 PM
            • Any property tax experts you can recommend please?
              by mpppen
              Hello,
              We have a small BTL portolio of five properties. Some are in our personal names and the latter ones in a property company we set up a few years' ago when the tax rules changed.

              I'd really like to find someone who can advise us of the best way of either bringing the personal...
              03-03-2022, 20:00 PM
            • Reply to Capital Gains Tax dilemma
              by Gordon999
              You have owned the property for 38 years ( 1984 - 2022 ) and lived in the property for 22 Years ( 1984-2006 ) plus 16 years for letting..

              The total capital gain over 38 years is apportioned between "residence period" ( exempt for cgt ) and "letting period" ( liable...
              19-05-2022, 10:07 AM
            • Capital Gains Tax dilemma
              by Ollyn
              Hello

              I am considering whether to sell my house which has been let for some time and need to see how I can best deal with CGT.

              I lived in the property from 1984 until 2006.

              From 2006 it has been occupied by tenants, now vacant and being renovated.

              ...
              18-05-2022, 18:17 PM
            • Reply to Capital Gains Tax dilemma
              by ash72
              You should seek advice from an accountant, or a property tax for tailored advice to your specific circumstances, you may be entitled to some relief if the property at any time was your own principal residence.
              18-05-2022, 21:14 PM
            • Reply to Capital Gains Tax dilemma
              by theartfullodger
              You declare (online) and pay CGT within 60 days of sale. Depending on the numbers I would expect you to pay CGT. What records do you have of applicable costs, etc?

              What you pay will depend on what CGT rules when you sell - v unlikely to be better than today, possibly worse. Covid,...
              18-05-2022, 18:29 PM
            • Reply to Tax Allowance on Rental Income.
              by Gordon999
              The property allowance is a tax exemption of up to £1,000 a year for individuals with income from land or property.

              If you own a property jointly with others, you’re each eligible for the £1,000 allowance against your share of the gross rental income.

              If your annual gross...
              18-05-2022, 16:47 PM
            • Reply to Tax Allowance on Rental Income.
              by jpkeates
              It's £1,000 each.

              Most landlords don't use this though, because it's rare for income from a rental property to be low enough to qualify,
              18-05-2022, 09:59 AM
            • Tax Allowance on Rental Income.
              by banner257
              Can anyone help please, if a rental property is owned by two people 50 50. Would each owner be allowed to claim tax relief of £1000 each, or will the allowance of £1000 be split 50 50.
              Thanks
              18-05-2022, 08:42 AM
            • Reply to Consent to Let - do we still need to pay tax
              by Madmax86
              Rent is income. All income needs to be declared, regardless of the mortgage you have
              18-05-2022, 08:50 AM
            Working...
            X