Hi I'm wondering if you can help.Two partners have a rental property recently rented out. They are both on the mortgage and rental agreement however one pays 40%tax and my the other does not is there a way I can ensure the tax liability goes to her not them both
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It depends on things like are they married? Do they own as joint tenants or tenants in common?
There may also be Capital Gains Tax angles to consider.
Best talk it through with an accountant.
RM
This is the
age of self assessment. If two parties own a property equally then normally the rental profit will be divided equally. However if one is doing all the work and both decide that person should have the rental income, then as long as you inform HMRC and the money is paid to that person there shouldn't be a problem.
There is particular reference to this on the gov web site. It has to be set up at the start, not at the end of the year.
Law has changed
age of self assessment. If two parties own a property equally then normally the rental profit will be divided equally. However if one is doing all the work and both decide that person should have the rental income, then as long as you inform HMRC and the money is paid to that person there shouldn't be a problem.
There is particular reference to this on the gov web site. It has to be set up at the start, not at the end of the year.
Something has changed since I last looked into this scenario then.
Thank you
runningmate. As I said whatever you do has to be set up at start not decided at year end.