14:33 PM, 28th January 2013, About 10 years ago 20
One of our readers has sent in the following email (dark blue text below) and is looking for ideas that other landlords have used to minimise tax by spreading rental profits between spouses.
Mark Alexander has shared a few thoughts but would like to point out that he’s not a qualified tax adviser. Therefore, we have also included a contact form for you to get in touch with the accountants Mark uses. He’s also invited their landlord tax expert, Neil Barlow, to comment.
“I am just buying another Buy-to-Let property and this will push me into the higher rate tax area. I understand I can create a declaration of trust document which will assign the beneficial interest of a property’s income fully over to my wife. She will now need to serve a tax return annually, but she will still be below the 40% tax rate even with her job income.
The question which I am not sure about is whether the tenancy agreement has to be in her name and the rent paid to her bank account. It would be easier for admin purposes for me to have to deal with all these issues as I do this already. Would this mean that I would now have to act as an agent for my wife to get round this issue?”
I can think of quite a few things that you could look into but I do urge you to take professional advice. If you would like me to introduce you to the accountancy firm I use personally please complete the form at the bottom of this article. Other landlords may well leave suggestions below the article in the comments section of this thread. Here’s my suggestions though:
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