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Allocation of equity & how to minimise rental tax

How can I keep my equity and still allocate rental income to my partner to be tax efficient?

I already owned one buy to let property. Now I am married I want to put the buy to let property in both mine & my wife's name. I am a higher rate tax payer and my wife has no income so we are remortgaging and putting my wifes name on deeds as Tenancy in Common. In order to maximise my wifes personal allowance we want to allocate the rental income as 1% to me & 99% to my wife. As such does the Tenancy in Common have to be split the same percentage as the Declaration of Trust in order to allocate the rental income? does the Declaration of trust have to be the same percentage as the HMRC form 17?

Finally I have 95k of equity in the property (value 170K) already if we allocate the shares as above do I keep the equity or is it split the same and do we have to pay CGT on the change?

 

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11th Nov 2017 00:50

This is a site for "finance professionals", which I take it you aren't.

If you want advice, either (a) pay for it or (b) take your chances and use Google.

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11th Nov 2017 09:21

or (c) post your question on an internet forum, using a pseudonym, and rely on a response from someone else also using a pseudonym, who may or may not know more than you.

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12th Nov 2017 20:07

You've missed a trick that you would not have missed had you taken proper tax advice.

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