Income from tenancy in common

[nasser186]

Hi all,

I have a question, and I appreciate if someone help me on this. I am working, but my wife does not work and has no income. We want to buy a BTL property with tenancy in common. Say 50% me, and 50% my wife. Can I somehow dedicate all the rent to my wife as if it is her income, so we can benefit from income tax allowance?

Thanks,
Nasser

[pawncob]

Yes. You'll need to complete Form 17.
https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17

[maths]

Assuming the legal title is registered in joint names an appropriate declaration (using Form 17) can be made under which the rental income reflects the respective beneficial interests.

The % of rental income must be in line with the corresponding beneficial interests. Thus, beneficial ownership as tenants in common, say, 50/50 means rents must be split 50/50 (it cannot, for example, be 80/20, 30/70 etc).

Therefore if wife is to receive 100% of the rental income she must own 100% of the beneficial interest (you owning 0%).

Form 17 merely records the facts and must be filed with HMRC.