Rental Income

Rental Income

Didn't find your answer?

My client receives rental income and in the past we have split the income as to 50:50 between husband and wife even though the property is in the sole name of the husband.This was done to use wife's personal allowance since she does not have any other income. The inspector has picked up on this point. Is the 50:50 arrangement correct in practice?
Davinder Ahluwalia

Replies (2)

Please login or register to join the discussion.

avatar
By AnonymousUser
25th May 2007 16:43

rents
Unless there is some kind of legally enforceable contract or agreement whereby the wife is entitled to receive a portion of the rental income then it will all be assessable on the sole owner of the property.

Thanks (0)
avatar
By AnonymousUser
25th May 2007 20:49

Wife sole trader?
The only way I can see for the non-owner to derive taxable income in this situation is if they are acting as a sole trader providing management and other services in exchange for, in effect, half the rental income. But this would have required her half to be shown on the self employment pages rather than the land & property pages.

Thanks (0)