Tax return for BTL property

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  • Tax return for BTL property

    I am looking at how I can be more Tax efficient with my BTL property

    Currently it is in my name and I am a high rate tax payer, my wife is a low rate tax payer. Using a Declaration of Trust, I can make my wife a joint beneficiary, and can split the income from the property 50:50

    As the mortgage is in my name, do I need to split the mortgage interest 50:50 or can I declare that just on my return, therefore I generate less income on my share of the property?

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  • Do I have to pay capitol gains tax?
    I am currently living with my parents and have rented my flat out, this is the only property I own, and I lived there 12 years renting and 1 year as an owner. I am happy to move back in if this helps me to not have to pay capitol gains. Just read somewhere if its your principle home theres no capitol...
    17-08-2017, 22:13 PM
  • Reply to Do I have to pay capitol gains tax?
    When did you buy it, between what dates did you live in it, rent it out and when do you plan to sell it?
    17-08-2017, 23:10 PM
  • Buying BTL and declaration of trust?
    Hi there

    I'm buying a btl with my partner (not married)

    i believe we can do the mortgage under tenants in common (as opposed to joint tenants), then sign a declaration of trust to adjust the income split 99:1 (instead of 50:50). She's doesn't work.

    Is it that simple...
    17-08-2017, 06:22 AM
  • Reply to Buying BTL and declaration of trust?
    Many thanks, yes I had read the bit about if one of us dies etc.

    Ok we'll go for the standard joint tenancy, as I believe we can simply draw up a document for her to get 100% income anyway from what's been said here (and other threads)
    17-08-2017, 15:45 PM
  • Reply to Buying BTL and declaration of trust?
    There are other differences between married couples and non-married couples that kick in.
    You need to look at the totality of the situation, not focus on one part of it.

    If you are married and one of you dies, the surviving spouse inherits the deceased's property automatically....
    17-08-2017, 10:55 AM
  • Reply to Buying BTL and declaration of trust?
    Many thanks

    So aside from ownership implications if we ever split up, surely HMRC will be happiest in assessing rental income if we have a tenants in common ownership 99:1?

    Then rental split follows ownership split?

    Also if we get married it'll need to swap to...
    17-08-2017, 09:04 AM
  • Reply to Buying BTL and declaration of trust?
    Which is why joint tenants is the better route.
    There's no defined split in ownership.

    How the business then arranges its affairs is then, more or less, up to the business.
    17-08-2017, 08:49 AM
  • Reply to Buying BTL and declaration of trust?
    Raju Gajurel
    As you are not married, HMRC will look for the real beneficial ownership of the property. The factors such as who put down the deposit, who receives and spends rent, etc will become important. So, if your partner owns 99% of the house, then there would not be any issue from HMRC. But, this means she...
    17-08-2017, 08:18 AM
  • Reply to Buying BTL and declaration of trust?
    That's necessary for married couples.

    As unmarried partners you can purchase as joint tenants (which is probably better for you in some other ways) and decide how you split the income.
    You should probably document the income split and both sign it.
    17-08-2017, 08:14 AM
  • Split proportion of property income
    My daughter has a buy to let property with a mortgage. She is the sole named owner as the mortgage company would not accept me as a joint mortgagee on the grounds of age and income. As have provided her with the deposit and most of her student living funds she and I agree that we are 50/50 owners and...
    08-08-2017, 08:08 AM