Thinking of letting property out to buy

[let2buy]

Hello taxationweb,

I've just joined this forum and it's my first post, so please accept my apologies as I'm a little nervous and excited at the same time.

In order to help you understand, I'll give you a brief explanation of our circumstances:-

1. Currently my wife and I jointly own our property outright with no mortgage. We're now thinking of letting our property out in order to buy a better home and hopefully allow us to gain a small income of rent at the same time.
2. We both work and whereas I'm getting using up my full allowances of 1000L, my wife is only working a few hours due to kids, so she only uses a small portion of her 1000L allowance.

I assume when we rent out our property, we'd have to go onto Self-Assessment??? What tips can you wonderful members give to us to help save on tax? Would you recommend that in order to gain the most in tax savings that we setup like a partnership?

Sorry, but I'm still new to this, so my apologies if I say anything wrong.

Thank you

[King_Maker]

Have you done a search on the forums, as this type of question appears on a regular basis?

Unless you use the Declaration of Trust and Form 17 procedure, married couples MUST share the rental income 50:50.

Although it is possible in theory to utilise a partnership, most instances remain jointly owned investments.

[let2buy]

hello kingmaker,

What is this Declaration of Trust and Form 17? Where do we get it from and what does it mean for us?