I know that owners of jointly owned property can elect for any profit split they choose, but married couples must take rent in accordance with their share of ownership.
However, where in the legislation does it actually say that?
Replies (6)
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Look towards getting a deed of trust where married couples can split the income beneficially, but the ownership of the house for legal purposes is unaffected.
@ SavageTaxation - I am curious to know where in your response you consider that you have answered the question raised by the OP?
@ OP
Look at sections 836 and 837 Income Tax Act 2007 of the rules relating to married couples.
As regards the entitlement of individuals who are not married to take (non-partnership) income in shares of their choosing, I am not sure. I just rely on PIM1030.
With kind regards
Clint Westwood
I didn't but thanks for raising the point.
I was trying to assist the OP with where I assumed the question was going, rather than answering but giving no actual advice to solve what would be the next question that followed it.
FHL is distinguished from other commercial property letting
As you point out, Exception D in s.836 allows for unequal division of income between spouses for FHL activity, without requiring an election etc. This is because FHL is treated as earned income (although the NIC rules are a grey area).
Other commercial letting is not distinguished from other unfurnished lettings, unless that commercial letting is undertaken through a partnership. Or so I believe.
With kind regards
Clint Westwood