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Where Taxpayers and Advisers Meet

US Domicile / UK Rental Income - Joint Ownership/Single Income

grae
Posts:1
Joined:Wed Aug 06, 2008 3:05 pm

Postby grae » Mon Sep 08, 2003 3:20 am

My firm is relocating my family and I to the NY office for a few years, keen to maintain a foothold on the UK housing ladder we will be letting our property during our absence. The property is registered in joint names and I am keen to understand if the rental income can be allocated to my wife for tax purposes as she will not be working during our time away, and as such only subject the rental income to the lower tax bands (hopefully). Is this possible ?

Nigel Lord
Posts:518
Joined:Wed Aug 06, 2008 2:18 pm

Postby Nigel Lord » Mon Sep 08, 2003 7:23 am

Grae

For UK income tax purposes you can achieve this by transferring part, or all of the beneficial ownership to your wife by making a deed of gift. As entitlement to income cannot be separated from beneficial ownership (for married couples) this will equally affect the CGT treatment. (The ownership could easily be transferred back prior to any disposal.

You should take local advice in the US.

Please refer to me if you require assistance in making the deed of gift.

Nigel Lord
Lord Associates
Taxation & Business Consultants
Caxton House
Old Station Road
Loughton
Essex, IG10 4PE
020 8418 9101 & 07769 931852
mail@lordassociates.co.uk


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