Husband & wife have been letting out a house for 5 years, but not declaring the income. Husband has received a letter from HMRC asking about the rental income, but wife hasn't. As husband is higher rate taxpayer, they wanted the wife to receive most of the rental income. I don't think they can do this as the property is owned by both of them, and no form 17 has been been submitted. Am I correct?
Also, as wife hasn't been contacted by HMRC, is it worth making a voluntary disclosure? Or is that a waste of time as she's only making the disclosure because husband has been contacted by HMRC and therefore the disclosure could be viewed as prompted?
Thanks in advance.