Hi property tax experts.
Just some background information.
1. I have rented out a property for the last 5 years without declaring income to the HMRC. I now wish to declare this so I can set the records straight and for a peace of mind.
2. The property was purchased under my sole name and receive all income under my sole bank account. This remains the arrangement to date.
3. In the second year after I purchased the property, I met and married my wife.
4. I am a basic taxpayer.
5. During the rental period I purchased a second house which is now our current family home.
6. My wife is a full time mum of two.
In general, my research shows that the property needs to be in joint ownership or the income receiving account needs to be joint names in order to make use of my spouse's personal tax allowance. I have come across some vague articles on the net that it can be argued the income beneficiary (in this case my wife) has enjoyed the receipt of income- e.g. I pay for all expenses for the family such as kids' costs, car for wife to do school run, cars' insurance, fuel, tax, food, utility bills etc, which means I can declare a 50:50 split of income.
Is it correct to declare my income from the property as a 50:50 split based on the fact that she has the right to and benefited the income received from the property?
Thanks in advance for the clarification.
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