BTL and partner tax efficiency

  • Filter
  • Time
  • Show
Clear All
new posts

  • BTL and partner tax efficiency

    Hi all

    I've been reading up on this via previous threads, but would appreciate some advice.

    I own a property in my sole name with a mortgage in my sole name.

    I pay 40pc tax and the mrs (un married) pays 20pc. This would be 0pc if we have children.

    I don't want to get married ever (don't ask, it's a personal thing!), but I would like to know if, despite the above, I can simply transfer 1pc to her and then she can get 100 pc of the rent.

    I would of course set up a new bank account for her in her name for the rent and to pay expenses, but would the interest be allowable if the mortgage is purely in my name and coming out of my bank account??

    I'm an accountant, but I hate personal tax!!

    Thanks in advance


  • #2

    My key issue is the interest issue - I think I've worked out the other bits from a couple of current threads.



    • #3

      Loads of up to date and related information here:


      • #4
        Thanks, there is indeed a lot of good stuff in there.

        However, I cannot see what I do with the interest if it's in my name or in a joint name.

        Is the presumption that the costs follow the income?


        Latest Activity


        • 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?
          1. The calculation of capital gain starts from the date of purchase of your property up to date of your sale date. If you paid 100K and sold for 160K , then your capital gain is 60K. The capital gain during period of living at the property + 18 months after moving away is exempt from capital gains...
          18-08-2017, 15:04 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