Income tax on property rental

[Lisa T]

A couple plan to rent their property for £950 per month whilst they move to France. Husband is a 40% tax payer and wife does not work. Is there any way that the wife can have all of the rental income to make use of her personal allowance and save husband paying 40% on his share?

[James Smith]

Lisa,

Firstly there may well be various deductions available against this income in terms of agents fees and mortgage interest.

In terms of the general principle, yes it is possible for the property to be transferred to the Wife but this is an area where you need to tread with some care to avoid the anti-avoidance provisions. Looking more broadly it may well be that the husband isnÂ’t actually tax resident in the UK during this period the full details would need to be explored to look at this scenario in more detail to get the best route.

Regards,

James Smith
Chartered Accountant
www.jamesesmith.co.uk
01284 764436