Can the profits from renting a property that is owned jointly by a husband and wife be divided by any percentage they choose. If so does this need to be recorded officially?
Replies (7)
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Think you haven't asked the right question.
Because you are probably asking if it can be done for tax purposes.
No - unless a DoT is executed and Form 17 filed with HMRC within 60 days. Or a partnership exists (unlikely).
There could be adverse CGT and SDLT consequences.
I disagree
They can divide the profits between them (which is the question asked) in any proportion they see fit. If the OP wants advice on the taxation implications, then they should invest as much (if not more) effort in their question as they are expecting from respondents.
Do you think we should have a poll on the most times the same question is asked over and over again?
I know that the search facility on this site is woeful but I find that if you type your question into google followed by accounting web then most of the previous posts are listed.
Tax
Thanyou for that. I shall try and find a question more to your liking.
Not sure you understand the points being made. If there is a problem with your question it is that you may have omitted to include the words "for tax purposes". But if it is not a question about tax at all then you have omitted no words and the first response you received above is spot on, and complete in every detail. Happily we do not yet live in a country where people are sent to prison for sharing profits in different proportions from what our law makers have decreed.
But if your question is in fact about tax, as some of us suspect despite you not mentioning it, then the answers will be very different.
So is your question about tax or not?