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 with planning such as this 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 on how we can help Landlords to save tax.