Transfer of profits from property letting to wife?

by Readers Question

14:16 PM, 1st April 2015
About 4 years ago

Transfer of profits from property letting to wife?

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Transfer of profits from property letting to wife?

I have 5 rental properties all with BTL mortgages. The properties are in my sole name, as are the mortgages.

The income from the 5 properties is circa £10,000 net of allowable expenses. As a 40% taxpayer this is quite a hit but, I married in 2014 and my wife has taken early retirement with no income.

Obviously we need to make the most of her Tax Allowance, but I’m not sure of the best at forward. I am aware I can transfer the houses and mortgages into joint ownership with associated costs for each house, and then split the Tax bill.

Would this be the best solution?

Kenbride

 



Comments

Neil Patterson

15:41 PM, 26th October 2015
About 4 years ago

Hi Daniel,

Your enquiry went through Friday afternoon, but I have chased them for you 🙂

Daniel Gregory

16:20 PM, 26th October 2015
About 4 years ago

Cheers Neil,

Yes it was Friday afternoon...we all know what they feel like, that's why I've not chased them yet 😉

Ken Smith

17:18 PM, 26th October 2015
About 4 years ago

Reply to the comment left by "Daniel Gregory" at "26/10/2015 - 16:20":

Yes Daniel, it all worked out fine. The only addition I have to make is, if you are thinking of remortgaging, do it before you apply for the Deed of Trust, as the deed is seen as a "restriction" on the property by some companies.

Ken

Daniel Gregory

17:57 PM, 26th October 2015
About 4 years ago

Cheers Ken.

No remortgage due for a while so all should be fine there. Are you now able to offset the costs in both you and your wife's name?

Ken Smith

23:03 PM, 26th October 2015
About 4 years ago

Reply to the comment left by "Daniel Gregory" at "26/10/2015 - 17:57":

My wife is a non earner, therefore we are using her allowance against 99% of the net profits.

Julie Kirby

7:16 AM, 16th August 2016
About 3 years ago

My husband has just transferred his 50% ownership of two BTL properties with no mortgage to me as he is a 40% tax payer and I am not. Do we need to tell HMRC?

Also I am about to ask the tenants to pay their rent into my new sole bank account but should I issue new tenancy agreements in just my name and if so what should I do with the bonds held in the DPS custodial scheme? It would be great if there was some sort of simple tenancy amendment available. Thank you

H B

8:13 AM, 16th August 2016
About 3 years ago

Reply to the comment left by "Ken Smith" at "02/04/2015 - 13:07":

Incorrect. You cannot transfer ownership of any mortgaged property without telling the lender.

SAM UK

11:24 AM, 19th March 2018
About A year ago

Reply to the comment left by money manager at 04/04/2015 - 12:09
Hi .

My wife owns a number of properties via her personal name and via ltd companies. i have (husband) been both employed by the company and as a employee (for properties in her own name) (paying NI and tax/registered with hmrc) during the last year managing the properties. I perform the same duties a letting agent charging 12% for full management would do.

Has anyone had any experience that my wife can use my wages as running cost for the company / expenses for the properties in her personal name.

She works and has no time to manage the portfolio.

regards sam

Neil Patterson

11:27 AM, 19th March 2018
About A year ago

Hi Sam, I think the answer is yes, but the question did lose me so I would always recommend in any event you check the advice with your accountant who knows all the circumstances.

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