Income from property

Income from property

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Me and my partner both live in our main residence but I have been left a second house for which the deeds are just under my name. I intend to refurbish this and let it out.
My partner only works a few hours (under personal allowance) where as I work full time.
My question is would we be better off if it was under her tax return. How can i put all the profits of the property letting under her tax? Can I gift it to her (and how would i do this)and if so what would be the consequences if i decided to sell. Would it be better to keep it under my name but i am in the 40% tax bracket
Any help really appreciated.
anon

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By AnonymousUser
13th Sep 2007 19:55

gift
her a share in the property - there is CGT due by reference to market value but if you inherited recently the base cost is probate so any gain may be covered by your annual exemption (do have a valuation done though to be on safe side).
She will then be taxable on her share of the rental income. This must actually be paid to her and of course were you to split up that share of the house will remain hers.
When the house is finally sold you are each liable to CGT on your share by reference to your base costs - in your case probate; in hers the market value at the time of the transfer.

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By User deleted
18th Sep 2007 16:44

Income from property
Thank you for your advice Jane.
But who would be liable for the CGT when the house is going to be sold a few years down the line? My partner I presume?

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By User deleted
17th Sep 2007 14:41

No Gain No Loss
Isn't the transfer between spouses on a no gain no loss basis?

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By User deleted
17th Sep 2007 19:25

Thanks for replies
Thank you for your replies, yes this is my spouse. Surely there will be a gain somewhere down the line (when we sell) so whoevers name is on the deeds will pay the CGT when its sold. Is this correct?
Can I have the rent paid to her but the property still be under my name and her declare the income each year? guess not!
Thanks

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By AnonymousUser
17th Sep 2007 20:05

Partner or spouse
I assumed as you said your partner you meant not actually married. If you are married then any transfer is of course at no gain no loss and you could transfer the house to her and then she would be taxable on all the income.

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By User deleted
19th Sep 2007 10:46

Spouse
The CGT will be payable by the owner of the property which would be your spouse.

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