This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

how to ensure my husband officially get a percentage of the rent

chocaholic
Posts:22
Joined:Wed Aug 06, 2008 3:26 pm
how to ensure my husband officially get a percentage of the rent

Postby chocaholic » Tue Jan 18, 2022 3:37 pm

My husband and I have an agreement that despite the property being solely on my name, he would get 75% of the income. How do I inform the inland revenue of this fact? Do they need to be informed or can I just update my tax schedule accordingly?

Thank you in advance

chocaholic
Posts:22
Joined:Wed Aug 06, 2008 3:26 pm

Re: how to ensure my husband officially get a percentage of the rent

Postby chocaholic » Tue Jan 18, 2022 3:40 pm

Sorry, I saw that someone posted a similar thread elsewhere. I can't seem to delete this thread.

BlueCrab
Posts:2
Joined:Sun Jan 30, 2022 2:31 pm

Re: how to ensure my husband officially get a percentage of the rent

Postby BlueCrab » Sun Jan 30, 2022 2:36 pm

Where is the other thread?

Lambs
Posts:1579
Joined:Wed Aug 06, 2008 3:15 pm

Re: how to ensure my husband officially get a percentage of the rent

Postby Lambs » Sun Jan 30, 2022 6:16 pm

Dear C,

In the absence of fuller details, I suspect this to be ineffective for tax purposes. Simply, you cannot divert income from an investment to another party if he or she does not (at least partly) own the asset (or in some circumstances participate in the activity that gives rise to the profit). Specifically in relation to spouses / civil partners (and young offspring) this will trigger the Settlements anti-avoidance legislation to deem the income ostensibly diverted still to belong to you for Income Tax purposes - i.e., you will remain taxable on the full amount.

Depending on precisely what you want to do with the property and the income therefrom, there almost certainly will be route(s) to achieve your aim(s). However, there will likely be paperwork and formal notification to HMRC, as appropriate.

Nor will HMRC ever accept that such apportionment of income can be made retrospectively.

I trust this is useful as a starting point.

With regards,

Lambs


Return to “Property Taxation”