I'm currently considering to transfer a small amount of share of our current property (under my name only, no mortgage) to my husband, so hopefully when we rent out it, it will be able to count the rental income on him for the tax efficient reason (as he is the 20% tax payer).
However, checking the form17 guidance, I noticed:
"Property held jointly by married couples or civil partners: Form 17 rule - declaration must reflect reality
Married couples and civil partners do not have a general option to have income taxed in any way they like. They can depart from the standard 50/50 split for tax purposes only where
• each spouse or civil partner is in fact entitled to a share other than 50/50 in the property and
• the share that a spouse or civil partner has in the income is the same as their share in the property"
I also noticed that form 17 requests: "You'll also need to provide evidence that your beneficial interests in the property are unequal, for example a declaration or deed".
So if I have 90% share of the property and transfer 10% share to my husband, does it mean that we will have to count 90% rental income on me? Or if we'd like to count the 90% rental income on him, do I need to transfer 90% share to him? We are in Scotland if that makes any difference regarding the property ownership.
(Tried to search here but didn't find exactly the same questions/answers from the forum, so thanks a lot in advance for anyone who can advice anything here!)
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