How to sign rent and expenses to wife

Landlord Discussion Legal
1

Hi guys
Me and my wife rent 2 properties . We are both 50/50 owners . I work full time and my wife part time and now she is on maternity leave . Ive heard that I could sign all rent and expenses to her . Which could save some money + hussle for me to do tax return twice . Does anyone know how to do that ?
Also is it better to do new AST after original finished or should I just do rolling one ?

Thank you

2

As a married couple, you can only assign income other than 50/50 if you actually own then in a different proportion, and then only in the proportion that you own them.

https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9814

If you genuinely own different proportions you can do a form 17 to elect to be taxed on your own shares, but it has to reflect the actual beneficial ownership - you can’t just make it up to save tax.

So, if you are joint tenants (rather than tenants in common), you are pretty much stuck with 50/50…
https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9850

HMRC would want evidence of the split, for example…
https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9230

1 Like
3

If you own 50/50 as tenants in common then you can get a solicitor to draft a deed of trust changing the proportion of beneficial ownership to anything you like - 60/40, 99/1… You then use form 17 to tegistrr it with HMRC as Cath2 says. However, you should be aware that you will have no claim to your original 50% of ghe property unless you both agree to change it back.

4

Thank you for detailed answered . I will probably stick with 50/50 as it looks as easier option . I will just have to endure pain of doing tax return twice on that horrible gov website :slight_smile:

5

Thanks David . If I change ownership via solicitors . Wouldn’t I have to pay capital gain tax ?

6

No, there is no CGT between married partners.

7

I use Taxfiler - much less painful than HMRC’s website. It’s £36 for an individual return. (I’m an accountant so I file over 100 returns with it every year). I suspect they will do bridging software when the time comes too (so you can file MTD from excel, if you need to do MTD).

8

It might be worthwhile having a solicitor draft and file a declaration of trust. My husband and I are in the same boat - I’m a lower rate tax payer working part time so we did this to transfer 80% to me.