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Directors use of home in jointly owned property

Directors use of home in jointly owned property

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I have several sole director companies who claim a reasonable amount of use of home as office (usually no more than £2400pa) with the usual rental licence in place and supporting calculations.

Some of these will relate to jointly owned property (husband/wife's home). Before the changes to interest relief half was entered on the directors tax return with a white space comment along the lines of 'rental income is derived from a jointly owned property and equals the cost so there is no profit'.

Other than this the 'partner' would usually have PAYE income but nothing else requiring a tax return.

What is the position for the none director partner following the changes to interest?

Is the property income allowance avaiable (as long as total rent share is no more than £1,000) so that a tax return is not required?

I'm looking for the simplest way to continue with claims with minimal additional admin.






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By Matrix
12th Aug 2018 11:14

Unless your clients want to pay higher rate tax on the rent then you may need to lower the rent charged. Other than that there are no changes, if tax is due then the PAYE partner will need to notify HMRC in the usual way.

I do the tax returns for both partners for most of my clients so not a problem but will need monitoring for those with high mortgages. The admin makes it all less worthwhile.

Thanks (1)
By Rammstein1
13th Aug 2018 09:25

You cannot claim the £1,000 property income allowance against rent from your own company.

Thanks (1)
Replying to Rammstein1:
By CWservices6064
13th Aug 2018 09:46

I am aware that the director cant’t. Is this the case for the non director/shareholder for their half of the property income too?

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Replying to CWservices6064:
By Rammstein1
13th Aug 2018 12:13

You can’t use the allowances in a tax year, if you have any trade or property income from:

a company you or someone connected to you owns or controls
a partnership where you or someone connected to you are partners
your employer or the employer of your spouse or civil partner

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