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Where Taxpayers and Advisers Meet

Buy to let rental assignment

Edinburgh
Posts:1
Joined:Mon Sep 18, 2017 11:19 pm
Buy to let rental assignment

Postby Edinburgh » Mon Sep 18, 2017 11:29 pm

Hi I am looking to buy a property (buy to let) in my name wherein I will have the mortgage in my name and property registered in my name. I work as an employee and in 40% tax bracket. My wife is a house wife and does not have any income at the moment. Also note both myself and my wife do not own any property at the minute and its our intention to buy only buy to let property as an investment.

Few questions in this regard are .

1. Can I legally assign the rental income to my wife thereby ensuring the income tax on the rental income is nullified or reduced to the extent it is assigned to my wife.
2. What is the process to assign the rental income to my wife? please explain in detail.
3. Will my wife also get ownership of property or just the share of the rental income?
4. If there any cap on how much of the rental income be assigned to my wife? can this be as high as 99%?

Arjun
Posts:8
Joined:Tue Aug 23, 2016 5:05 pm

Re: Buy to let rental assignment

Postby Arjun » Wed Sep 20, 2017 8:33 pm

Not for sole ownership. Had your wife been in the title deed then you would have been able to complete this https://public-online.hmrc.gov.uk/lc/co ... ate=17.xdp form and transfer beneficial ownership but not in this instance i am afraid.

maths
Posts:8507
Joined:Wed Aug 06, 2008 3:25 pm

Re: Buy to let rental assignment

Postby maths » Wed Sep 20, 2017 10:48 pm

You cannot achieve your objective in the manner you suggest.

However, you can execute a declaration of trust giving wife a 99%/80%/60% or whatever beneficial interest in the property. She would then have an interest in the property and be entitled to rental income arising on her % share.


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