misstealeaf
Registered User
- Messages
- 93
My husband and I are married since 2011 and have not elected to be jointly assessed to tax. I have an apartment which i plan to rent out as we have just bought a house. This was bought before i married him. I will declare this and be liable to tax with the revenue on the rental profits. My husband has no pension in his job so is planning on starting paying into one himself this year.
My question is that if we elect to be jointly assessed to tax will we be able to offset the rental income tax liability against the tax relief on the pension contributions which he pays. He is only 31 so i understand that he will be only liable to receive tax relief on 20% of his salary.
I understand this would be the most tax efficient way for us to manage our affairs but please advise if i am incorrect. I have estimated that my tax liability on the apartment would be c.1700 so if he paid c.4k into a pension and got tax relief on this then we would essentially be getting 4K of a pension for only 2,400 and have no liability on the rental of the apartment. Is this correct?
My question is that if we elect to be jointly assessed to tax will we be able to offset the rental income tax liability against the tax relief on the pension contributions which he pays. He is only 31 so i understand that he will be only liable to receive tax relief on 20% of his salary.
I understand this would be the most tax efficient way for us to manage our affairs but please advise if i am incorrect. I have estimated that my tax liability on the apartment would be c.1700 so if he paid c.4k into a pension and got tax relief on this then we would essentially be getting 4K of a pension for only 2,400 and have no liability on the rental of the apartment. Is this correct?