Splitting tax burden with wife

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    Splitting tax burden with wife

    Hi,

    I am in the UK armed forces but my family and I have been posted abroad for 3 years. We have therefore rented out our jointly owned house in the UK for £1350 per month. I understand that we can offset tax with mortgage interest and other costs, but I wonder what the best way to utilise our tax allowances are? I am a higher rate tax payer, but my wife is not currently employed and doesn't expect to be for the duration of my tour.

    #2
    You get your solicitor to draw up a Declaration of Trust which details the Beneficial Ownership of the property from 99 to 1 to 1 to 99. Get the solicitor to submit Form 17 to HMRC. ( Form available on line )
    This does not change the Legal Ownership so no need to contact your mortgage provider.

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      #3
      Thank you Pete, would I need to make the split in proportion to the allowances we have so that I use all of mine as well as hers.

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        #4
        The split is entirely up to you. You do not have any allowances as they will have been used up by your normal salary. Remember to nofity HMRC that you are letting the property so it triggers annual SATR's. Also register as for the Non Resident Landlords Scheme ( even if you are not Non resident as such ). Regards Peter

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