Rick S

Registered with Property118.com
Monday 23rd February 2015

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Total Number of Property118 Comments: 1

Rick S

16:58 PM, 19th February 2016
About 4 years ago

Remortgaging my home for buy to let in joint ownership - tax situation

Have you borrowed more on your residential mortgage on your own home in order to purchase the property to let outright?
If this is the case, you are unable to offset the mortgage interest against tax as the mortgage can only be on the property that is being let out in order to do this.

With regards to splitting the income re tax purposes, as joint tenants you can split 50/50. However, you may wish to be tenants in common and split differently (via a declaration of trust) but, you will need to submit the relevant HMRC Form 17 if you want to benefit as otherwise ownership will be assumed by them as 50/50 for tax purposes. There is more information on this site.

You can change the declaration of trust, even revert to joint tenants at a later stage if it is beneficial to do so. A solicitor will charge £100 + for doing this.... Read More