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Jointly Owned Property

09/10/2018 11:10:46
We have a lodger living with my wife and I in our jointly owned house. The respective income to each of us is about £3300.
Do I need to declare this income in the Property section of my Self Assessment return and if so, do I tick the Rent-a-room relief box?
Thanks.
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Re:Jointly Owned Property

10/10/2018 10:23:01
Hi,

Please refer to our guidance on the Rent a room Scheme

and the Helpsheet 223 - Rent a room scheme

I hope this is of help.
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Re:Jointly Owned Property

22/10/2018 09:53:30
Hi
I own a rental property jointly with my wife in unequal proportions. I have previously submitted a Form 17 and received a reply acknowledging this. I am now in the process of completing my 2017-18 self-assessment and the property income page only allows gross (100%) income and costs to be entered. Will the actual percentage of the earnings that are due to me from the previously submitted Form 17 be taken into account, or do I need to do anything to 'remind' HMRC of my percentage ownership?

Thanks

Guy
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Re:Jointly Owned Property

22/10/2018 11:10:01
Hi Guy,

You only need to enter your share of the property income and expenses on your tax return and your wife should enter her share on her return.
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Jointly Owned Property

06/11/2018 12:21:41
I and my wife bought a Buy to let property in 2011 and have a Declaration of Trust (legally executed and signed) at time of purchase as to disproportionate split of Benefits/Profits from rental income from the date of purchase. We have declared our share of income every year on these basis. We were not aware of the requirement for Form 17 till I saw your recent Webinar program. What do we need to do?
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Re:Jointly Owned Property

07/11/2018 09:42:35
Hi,

Thank you for your question.

Strictly speaking, you and your wife should have completed Form 17 in 2011.

A Form 17 cannot be backdated. It should be submitted to us within 60 days of completion and we note your records that it is effective from the date it is signed.

Going forward, you should now complete the Form 17:

Form 17

You may wish to enclose a letter with the Form 17 so we are aware that the income has been declared as per the Declaration of Trust. You should also let us have sight of the Declaration to support the Form 17
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Jointly Owned Property

07/11/2018 11:44:15
Thank you for a very helpful reply. We shall do the needful.
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Jointly Owned Property

26/11/2018 08:02:31
I have a FHL and last year gifted half of the property to my husband. We understand that we can allocate the income in any proportion we like as the property is an FHL. This would enable us to use my husbands unused personal allowance. So, can we allocate the income 90/10 in favour of my husband? Is a Form 17 necessary? Do we need to explain on my selfassessment form why my income from the property has reduced thus year (because my husband will show the 90% income on his self assessment?
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Jointly Owned Property

26/11/2018 08:02:31
Reading the above it implies that a Form 17 and Declaration of Trust need to be submitted in order that the income from a rental property can be allocated in unequal shares. However, we have been told that this does NOT apply to FHLs. The income can be allocated unequally on our respective tax returns. No requirement for a Form 17 and Declaration of Trust. Please advise and thanks in advance
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Re:Jointly Owned Property

26/11/2018 09:41:37
Hi,

Thank you for your questions.

In response to the first question posted by Anonymous, the 50/50 rule does not apply to furnished holiday lettings.

Please see the following link which confirms that the income can be split in any way with the agreement of all parties.

TSEM9820

You do not have to complete a Form 17 in respect of furnished holiday lettings. There is no requirement for you to provide an explanation on your tax return, but you may wish to give a brief explanation in the any other information section.

In response to the second question posted by Anonymous. A form 17 is only required for rental income to be declared in unequal shares. This does not apply to furnished holiday lettings.

We also direct you to the following link for confirmation of this.

TSEM9820

I hope this helps and thanks for using the HMRC Online Customer Forum.
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Re:Jointly Owned Property

18/12/2018 16:53:59
HI our rented out property had £3000 income in 2017-18.
Split between myself and my husband is £1500 each.
Our expenses were less than £1000 each so i understand we both need to complete tax returns, and in this case the £1000 allowance each would work out best for us. Is that correct?
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Re:Jointly Owned Property

18/12/2018 17:28:08
Hi,

Thanks for your question.

Unless you have any other self assessment criteria then you do not meet the requirement to complete self assessment returns, you can contact HMRC and inform us of the amount of rental income you have and this can be included in your PAYE coding if you have income from employment or pension sources.

You are correct, however in stating that you can both claim the £1000 property allowance against your £1500 share of the gross income.

I hope this helps.
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Jointly Owned Property

21/01/2019 08:08:29
Hello HMRC,

My mother and I own a few properties in Scotland. The ownership is 50/50. I would like to attribute 100% of the rental income to her (I do not want to receive any of the profits).

Is there some sort of form or declaration I need to do?
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Re:Jointly Owned Property

21/01/2019 13:34:57
Hi,

Thank you for your question.

We would advise you that if you own a property with another person who is not your spouse or civil parther then your share of any rental profits or losses will usually be based on your actual share of the property that you own. In the case of a property owned with anyone other than a spouse or civil partner then there is no official form for you to complete if you want to elect for any profits or losses to be taxed in a different split.

However, both yourself and your mother should write to HMRC to advise us that you want to attribute 100% of any rental profits that you receive to your mother. Please note to include your National Insurance number in any corresponce. Please note the address is : HM Revenue & Customs, Self Assessment/PAYE, BX9 1AS.

I hope this helps.
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Jointly Owned Property

29/01/2019 11:14:55
Last year I became a one twelfth owner of a 2 bed flat in Dorset which is rented out at £700 per month. Recently this has been raised to £750 per month. It was my understanding that because my annual income from the rental is well below the £1,000 personal allowance, there was nothing to be paid or declared. This was the advice given to my sister (also a one twelfth owner entitled to the same rental income) from HMRC some months ago. It is for this reason that I did not include this fractional ownership/income in my 2017-18 tax return, which was submitted at the end of 2018. I trust I’ve done the right thing.
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Re:Jointly Owned Property

29/01/2019 11:56:25
Thanks for your question.

Just to point out, the £1000 is not an additional personal allowance. It is a trade and property income allowance and can only be used against that income. You are correct that if your rental income is below that amount, you do not have to show this on your tax return.

Please note that you cannot claim the £1000 trade and property allowance in order to create a loss.

I hope this helps.

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