Is it possible to avoid the 40% tax on rental profits?Make Text Bigger
I am nearing completion on my first BTL. I am in the 40% tax band and therefore I will have to pay 40% tax on my rental income.
The property is solely in my name but is it possible for the rent to be paid to my wife as she gets taxed at 20%. I’m guessing this isn’t possible or everyone would be doing it but wanted to pose the question.
The other option I’m looking at is forming a company so I only have to pay corporation tax saving me around 20%. Again, is this possible as the mortgage is in my name and under the leasehold agreement I’m not allowed to sub-let?
Any advice or other ideas so I’m not ‘losing’40% of my rental profit would be appreciated.
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