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property rental income

If a husband owns a rental property solely, can the rental income be given to the wife so she pays only 20% tax on it? Or does she have to own the property in order to be able to claim the income?


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09th Dec 2012 10:06


The wife has to have at least some beneficial interest in the property before any part of the rental profit can be attributed to her.

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09th Dec 2012 12:49

You could transfer a nominal amount into joint names...

see text from my book '101 Property Tax Secrets Revealed'....

If one spouse owns rented properties in their own name but is a ‘higher’ or ‘additional’ rate taxpayer and the other spouse is not, it would be beneficial for at least some of the rental profit to be taxed on the spouse.

To alter the income tax percentage charged, ownership of part of the property must be transferred into the spouse’s name.

Should the owning spouse not wish to transfer any material percentage ownership but still wishes to reduce their tax bill, a nominal amount of, say, 1% could be transferred.

In this instance the HMRC form 17 Declaration of beneficial interest in joint property and income’ must not be signed because not signing will ensure that the underlying property ownership is 99:1 but the income split is 50:50.




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