Letting a jointly owned property
What you need to know about your jointly owned property
It is not always the case that a husband and wife can decide how to share the rental income they receive from a jointly owned property. Where a property is owned jointly by a married couple (or civil partners), the income and expenses must be declared in equal portions on each of the owners’ tax returns, unless and until an election is made to the contrary and lodged with HMRC.
That election can only be made if the property is held as “tenants in common” rather than as “joint tenants”. The later legal position is the usual form of ownership but “tenants in common” is more flexible as the property can be held in unequal shares. It is possible to change the form of ownership but legal advice will be required.
By splitting income from property in the right proportions between partners it is possible to maximise tax savings.
At THP we specialise in helping Landlords and have developed a special section on our website just for landlords.
Please visit the Buy To Let section on our website at www.thp.co.uk/btl for more details.
About Jon Pryse-Jones
Since joining THP in 1978, Jon Pryse-Jones has been hands on with every area of the business. Now specialising in strategy, business planning, and marketing, Jon remains at the forefront of the growth and development at THP.
An ideas man, Jon enjoys getting the most out of all situations, “I act as a catalyst for creative people and encourage them to think outside the box,” he says, “and I’m not afraid of being confrontational. It often leads to a better result for THP and its clients.”
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