Joint assessment - joint rental income from property. How to assign income to wife?

[flyingfolly]

Hi, we own a rental property. My wife is on a lower tax rate and I'm on the highest one. We both own the property together.

How do we assign the rental income to my wife so that its getting the lower tax rate band? We're jointly assessed, but I understand that she can't transfer her tax bands to me?

 

[jpd]

If you own the property together, then you rent the property together - unless you only rent out her part of it

 

[Brendan Burgess]

You need to transfer your ownership of the property to her in full.

Brendan

 

[Bronte]

He won’t be able to transfer the property to her if he has a mortgage.

 

[flyingfolly]

No mortage, we own it outright. We own the property together (both our names on it). My wife my lose her job in a few years so will have a whole tax free band not being used so I wanted to ensure that she's using that tax band to get the rental income a zero/low tax rate. Is there any way to do this?

 

[Gordon Gekko]

Transfer the property to her.

Or if you don’t want to do that, just the right to the income.

 

[Opal**]

Transfer the property to her.

Or if you don’t want to do that, just the right to the income.

how do you transfer the right to the income?

 

[Gordon Gekko]

how do you transfer the right to the income?

You get a solicitor to do it.

 

[Paul O Mahoney]

You get a solicitor to do it.

What if the LPT liability was in her name?

 

[Gordon Gekko]

What if the LPT liability was in her name?

I’m not sure that’s particularly relevant. Ownership is ownership. The accountable person for LPT purposes is something else.

 

[Paul O Mahoney]

I’m not sure that’s particularly relevant. Ownership is ownership. The accountable person for LPT purposes is something else.

Just asking

 

[Gordon Gekko]

Just asking

Apologies. I wasn’t being snarky, but I can see how it could have been read that way.