Reducing tax burden - unmarried couple

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

    Reducing tax burden - unmarried couple

    My fiancee and I jointly own a property that we initially lived in for 3 years but now rent out.

    She is no longer working and therefore is not using any of her tax allowance, whereas my earnings this year will push me into higher rate tax.

    I have read the comments regarding Declaration of Trust and Form 17, however can this still be used even though we are not married to apportion all of the income from rental to my fiancee (all of which will be covered by her tax allowance) thus reducing the tax burden to zero?

    Thanks!

    #2
    No need to bother with any of that paperwork if you are not married. You just need to agree between yourselves how you wish to split the rent. Do document the agreement "We, Lloyd and Lloydette agree to share the rent of 9 Acadia Avenue 100:0 with effect from today. Signed and Dated."

    When/if you get married you will need the paperwork you mention.

    Comment


      #3
      Quick confirmation

      Hi,

      I was looking into this very thing myself. I've just started renting out my house (its in my name with a mortgage), but I am on 40% tax (just). My partner whom I'm engaged to (but not married) is a normal rate tax payer. I live with her in her house.

      To enable the tax on the rental property to be taxed in her name is all I have to do is write a document saying that I give the rent 100% into her name with effect from today? Do I not have to send it somewhere or anything?

      I'd have thought the tax man would have wanted something more, but I have no clue in this field as its all very new to me.

      Thanks

      Comment


        #4
        You need to own the property jointly. So give her 1%, say. And then agree to share the income so that she gets 100% of the income. Do the gift by trust, rather than having to register it at the land registry. And then that is it.

        When you get married, change the deed of trust so that she has 99% of the ownership of the property. Do this on the day you get married - sign the transfer as you sign the register. Then file Form 17 with HMRC.


        When you come to sell, you will want her to give you back most of her interest in the property as it will benefit you from a CGT point of view.

        Comment


          #5
          Thanks Telometer,

          Could you or someone else tell me what forms I need to use to transfer ownership and then to transfer a percentage of the rent? Also who needs to see these?

          Sorry for being such a neophyte in this regard, but I've never been that hot on taxation law.

          A link to a website would help if no one can spare the time to explain.

          Thanks

          Comment


            #6
            Go to see a solicitor who has a tax practice attached. You shouldn't be giving away bits of your properties and implementing tax strategies on the basis of gossip found on the internet.

            Comment

            Latest Activity

            Collapse

            • Giving/Gifting House to Kids
              by Tony-Edwards
              Elderly parents in early 80s, one in not so good health.

              Lived in the same home (no mortgage etc) for 50+ years - now worth approx £180,000 - £200,000 and they have minimal savings.

              Looking ahead, if one has to go into care (or council provided home care) I understand there...
              11-08-2022, 11:12 AM
            • Reply to Giving/Gifting House to Kids
              by Neelix
              Not on the attack, but you seem to be evasive...
              12-08-2022, 22:06 PM
            • Reply to Giving/Gifting House to Kids
              by jpucng62
              If they are left with a house bought 50 years ago and nothing else it certainly hasn't been a financially productive life has it? Either they have earned very little or spent quite a lot. Seems a bit odd to then think there would be anything left for the kids after either scenario....
              12-08-2022, 16:55 PM
            • Reply to Giving/Gifting House to Kids
              by Tony-Edwards
              Ha-Ha don't try and deflect it back to me.

              I posted a scenario with info to ask for peoples views - yet you chose to go on the attack lol...
              12-08-2022, 15:25 PM
            • Reply to Giving/Gifting House to Kids
              by gnvqsos
              The house is being exchanged for the provision of care .Why should the family inherit the house, benefit from a windfall, and expect others to fund their parental care? The family could fund the care and then house could be inherited as and when the parents pass on.. There is also equity release as...
              12-08-2022, 14:15 PM
            • Reply to Giving/Gifting House to Kids
              by Neelix
              Then why are you getting involved?...
              12-08-2022, 13:58 PM
            • Reply to Giving/Gifting House to Kids
              by Tony-Edwards
              Ah how sweet - and clearly you CANNOT READ !!!!!

              As previously stated - quite clearly I thought - " (BTW they're not my parents or kids) "...
              12-08-2022, 13:37 PM
            • Reply to Giving/Gifting House to Kids
              by Hollywood
              I'm not even sure the £86000 lifetime limit has come into being yet. I also think the care home fees have to have the personal care cost element removed.
              12-08-2022, 12:48 PM
            • Reply to Giving/Gifting House to Kids
              by jpucng62
              Two points:

              1. Why should the tax payer pick up the bill for the parents care if they have assets? I really don't understand this point of view.

              2. I would rather pay for my care and get a choice than rely on the Council & get possible a worse standard of care.
              12-08-2022, 09:53 AM
            • Reply to Giving/Gifting House to Kids
              by royw
              I'm not quite quite sure why you think they are being robbed? They have assets so can afford to pay for themselves. I would consider the council tax payers - many of whom can only dream of owning their own home - to have been robbed if they have to pay for it.
              Totally agree about those who could...
              11-08-2022, 22:45 PM
            Working...
            X