Splitting Rental Income Between Spouses on first BTLMake Text Bigger
My wife and I are about to invest in our first buy-to-let, and we want to make sure we get all our ducks in a row and maximise our tax liability.
I work part time, earning less than my annual income tax allowance; my wife is a 40% tax-payer. We had a meeting with a local accountant today, but she seemed to know very little about property tax, deductibles, credits etc.
I’d appreciate if someone could point out any glaring errors in my plan, or point out pitfalls:
We intend to buy a property as tenants-in-common. Then we will get a Declaration of Trust drawn up by a solicitor and submit it to HMRC along with Form 17 stating that I will have beneficial ownership of 99% of the property, and my wife will have 1%. When it comes to doing our tax returns at the end of the year, I will declare 99% of the rental income and pay tax accordingly, my wife doing the same for 1%.
Is that right? Will there be any other costs involved in transfer of beneficial ownership, such as SDLT?
Do I need an accountant?
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.