rental income just in wifes name???

rental income just in wifes name???

Didn't find your answer?

A wife has all the savings in her name (for tax reasons) she is going to buy a house with this and rent it to her daughter.  the house will just be in wifes name so the rental income will just be on wife's tax return.  Is there any issuses i should discuss with the husband???

Replies (3)

Please login or register to join the discussion.

By gbuckell
13th Dec 2011 10:19

Loss of PPR

No issues with the plan. I wonder whether it would be better for the daughter to buy the property with a loan from the wife (secured on the property if desired). Interest can be charged in lieu of rent. This preserves PPR relief. A possible drawback is if the daughter is claiming benefits.

Thanks (0)
avatar
By sarahtaylor2018
13th Dec 2011 10:43

just another thought!! would it be ok if the wife lends the daughter the money on interest free loan?  then there would be no "income" for the wife and the daughter would own the house as her main residence.

Thanks (0)
By gbuckell
13th Dec 2011 13:59

Fine

No problem with an interest free loan. Clearly the asset, being the loan, remains within the estate of the wife for IHT purposes.

Thanks (1)