rental income tax

[nomura]

My wife & myself own a property which we are renting out.
I am a high tax payer and my wife does not work ( not paying tax).
How is it possible to transfer this income rent to my wife only to optimize this income and be taxed to a lower rate?

Thanks
Nomura

[adelante]

Give her the house ! Alternatively if you raise a mortgage on the buy to let property then the interest paid can be put against the income received. Mortgage can be up to the value of the property.

[pallet]

I think you will find its the beneficial owner who pays the tax there for if your wife banks the rent in her sole name bank account and declares it on her s/a you should be ok but because the taxman does not play fair I would write to them for comfirmation

[Instinctive]

I would recommend preparing a Trust Deed through your solicitors to state that the property is owned beneficially by your wife. Thereafter, all rent should be declared in your wife's self assessment tax return. You should both attach a copy of the Trust Deed to your self assessment tax returns for the year of change and explain in the 'additional information' box that the property is beneficially owned by your wife from a certain date in accordance with the Trust Deed attached.

Ramnik

[nomura]

thanks a lot for all your advises