This scenario is a husband and wife team. The wife is fairly wealthy, a higher-rate tax payer, who effectively set her husband up in business; buying properties to let out to students. The wife put up all deposits to buy the properties. So far, they've got 8. All mortgages and deeds are in joint names (husband and wife). Combined annual profits (basically rent income less mortgage interest and minor repair expenses) are around £35000 per year. All profits are drawn and spent personally by the husband only. It's his sole livlihood. He also manages and maintains the properties. The wife has no involvement in this whatsoever, neither wishes so in the future. She draws nothing from the activity.
But what about the profits? Can they be entirely declared in the husband's name? He would of course pay tax at the lower rate. Or, because the properties are jointly owned by the wife, must 50% of the profit be declared in her name? She would of course pay tax at the higher rate.
Your opinions are appreciated.