Hi all,
Would like some help with rental income tax if that's ok.
I'm currently in the process of undertaking a let to buy, releasing equity from my current property to allow me to purchase a new house to live in, and renting my current property out.
I'm unable to add my fiance to the mortgage of the buy to let as she hasn't been in the country long enough so doesn't meet the mortgage criteria, and as a result she also can't be added to the mortgage of the onward purchase. As a result everything will be solely in my name however this tips me heavily in to the 40% tax bracket. The buy to let mortgage term needs to be 5 years fixed to allow me to borrow 75% of the property value and fund the onward purchase.
Based on this, is there any way of transferring the rental income to my fiance as she is still within the 20% tax bracket? Whether that could be all the rental income or 50% would be fine. We are due to get married prior to completion if that makes a difference at all.
Just wanted to check if anything can be done prior to completion that would save time and costs down the line. I've read about declarations of trust where a spouse can be listed as the beneficiary to all rental income despite them not being on the deeds or mortgage. Would anyone know if this is viable at all?
Any help would be much appreciated, many thanks.
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