Shared rental income now unravelling!Make Text Bigger
For a couple of years now, my unmarried partner and I have been sharing rental income from her old (leasehold) flat, which she owns outright. It never occurred to us that we couldn’t split the income in this way. It was a way of rewarding me for loss of rent-a-room income when she moved into my house with me.
Moreover we are both normally higher income payers, so we weren’t trying to reap a tax advantage. Now we have discovered, in the course of preparing wills, that for IHT purposes, HMRC would consider my share of rental income as a gift from her, and thus, we assume that she should have been declaring 100 per cent of the rental income on her own tax assessment.
We would like to go on splitting the rental income from this non-jointly owned property. Is there any way we can do this easily, and also, do we now have to retrospectively alter our self-employed tax assessment rental income for the past couple of years. In terms of what we find online, our case seems unusual, so I’ve come here for help.
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