I am a higher rate tax payer by employment and a landlord of one property which I used to live in as my main residence when I bought it. My wife is a basic rate tax payer with about 20k spare before she hits the higher tax rate threshold. The property rent is 26K a year before any expenses are deducted and this has been paid into a rental income account in joint names for the last 6 or more years. The BTL mortgage is currently in just my name but it's time to remortgage. We are considering putting the BTL in joint names if it will allow half the income to be taxed as my wife's income at basic rate. We've been advised of the likely stamp duty cost and conveyancing costs and are ok with these.
What is not clear from my research and other forum entries is whether changing the mortgage and deeds to joint names will GUARANTEE that we qualify to be taxed as a 50:50 split. (we are not trying to gain an unequal split via form 17)
I don't want to create a later problem for my wife with capital gains tax so I'd appreciate advice on the impact of that. The value of the property is about 510k and the BTL mortgage is 301000.
I will get personal tax advice but I just want to know if its worth me incurring the cost of that advice before I go any further. Any specific advice based on the information I've given is most welcome.
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