Any Legal advice for tax purposes

Could I ask any of you experienced blog members about the following below as I am a first time renter and have no idea ! Maybe anyone could give me some advice on the issue. I read the following articles and do not know if they are correct.

My property that I intend to rent out was inherited by me alone from my mother. The property deeds are solely in my name and not my husband’s. For tax reasons, I would like to ask you the following questions:-

  1. Would it be legally binding if I put both of our names on the tenancy agreement so that the taxation could be divided by the two of us even though he isn’t a joint owner or not?

  2. I read an article mentioning that if I inherited the property after our marriage then he is automatically entitled to a 50/50 split.of the income generated. I think it has something to do with declarations of trust under TSEM6001,TSEM9410 and TSEM9520. Is this correct?

  3. According to another article I read, he would be entitled to receive income from the property with my agreement in his capacity as, say, a manager of my holdings. That income would, in his case, be treated as earned income and would attract income tax if he earned above the threshold even though he wouldn’t be able to claim any expenses incurred in running the property, but I would be able to treat his income as an expense to me and, therefore, a deductible amount in my rental which ultimately will reduce my income tax if I am not wrong. Is this correct?

Any answers would be appreciated guys ! Thanks

1 - The tenancy agreement does not justify an automatic dual taxation.
2 - Once married, any type of assets you or your partner inherit will automatically be treated as dual ownership even if not married depending on how many years you have been leaving together as a couple.
3 - You have the freedom to employ your husband for work towards the property and remunerate him but it will be a bit difficult to convince HMRC. Unless you have everything documented with a contract of employment signed and witnessed etc,etc. This is more of an American approach.

My understandng is that if you are the sole owner of the property you are assumed to have all the rental income and therefore all the tax liability. Your suggestions dont alter that.

If you pay your husband to act as an agent, he will have to register with one of the redress schemes and may need to register with a client money pretection scheme and get insurance for the work. HMRC may require evidence that he is actually doing the job.

Thanks for your replies on this matter. I think I had better ring HMRC help line - maybe I can get some advice of how to deal with this issue. But, anyway your advice was very helpful.

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Speak to an accountant instead. HMRC advice, (if you can get through) is sometimes wrong and wont cover you if you follow it and end up breaking the law.

defo go an accountant . They will be on your side

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