My client is a higher rate tax payer and as a result of the recent changes he will suffer additional tax on his buy to let property. Up to now the income has been split jointly with his wife (who pays tax at the basic rate) and although there are now profits, there are still substantial losses being carried forward. I want to tell him to make a transfer to 'tenants in common' and then submit a form 17 to HMRC. This will then take care of the future tax implications in regards to his rental income, however, can the losses also be transferred across to the wife?
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If she's his wife, it's gone a bit beyond being a tryst.If you backdated the deed of tryst, then the losses might always have been the wife's?
Yes, but that just relates tothe income. It needen't stop them always having been her losses, surely?
If you backdate a Deed of Trust[can't comment about a Deed of Tryst]you commit a criminal offence. You can however execute a current Deed of Trust and recite that a change took place at some time in the past - if and only if that was true.