I have a client who is married and this couple have an income from jointly held property. Husband is employee and his earnings almost hit the higher rate limit.
So he wants to show this property income on his wife but ITA 2007 says couples will be taxed 50, 50 on their property income unless their share is unequal and they have to prove this.
My question is:
Is there any other way we can show this income as his wife?
I would like to thank to everyone in advance for their contribution.
He could gift his share to his wife on a no gain / no loss basis.
have a read of helpsheet 281 (see here).
http://www.hmrc.gov.uk/helpsheets/hs281.pdf
Careful though as I've fallen foul of something similar with one of my ex's.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Wish I could laugh about it... The house got sold and she had a boob job on the proceeds so double lose for me! (Or should that be triple lose, lol).
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Sure it won't take too long before they change from being perks to depreciating assets
bitter and twisted... me... Ok, its a fair cop
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
This is an interesting thread for me personally on a more serious note, (no I haven't had a boob job)! We have a house we rent out and at the moment it is equal share, I thought we couldn't get around this, I even rang the inland rev on it and they said that if the mortage was more in my name than hubbys then we could split it to my name more, well the BTL mortgage is joint as I couldn't get it on my own. Also when we spoke to the Solicitor before completion they said it only really applied if you have say put in different amounts as the deposit, inland rev also said that if we did it, it would be classed as dodging the tax, as I am a lower tax earner. Anyway we are in the throws of getting a 2nd BTL and I will once again be having the same conversation with the Solicitor as the new one will generate alot more income and I don't want hubby paying tax on it. So does this mean I could actually split the the ownership in my favour. Haven't read the help sheet yet Shaun as only just got back in. Someon else told me I could do it but I'm not too sure. If I can then don't want to make the same mistake as last time and make sure we get it correct at the beginning. Both properties have BTL mortgages on them and is nothing to do with the mortgage on the house we live in.
Normally it is a 50:50 split for married couples living together, regardless of the ownership split.
You can apply for individual entitlement by completing Form 17 but i am guessing HMRC would vet it carefully, so that someone with little or no income could pay the mortgage, while ther high earning partner makes no contribution (otherwise everyone would do it)
That was what I was told the first time round that it was 50/50 split but then after the event I was told something differently by a friend. Anyway first one is 50/50 so looks like this one will be too. HMRC when I phoned then said they same you that if you could do it then everyone would be doing it.
