New Landlord startup

16/05/2019 12:56:51
Hello, I'd be grateful for some initial guidance.

I am currently self employed but will be moving to a full time employed position in June. My wife is employed part time.

We began renting our jointly owned property out April this year (as we couldnt sell it!) . Am I able to pay for / complete tax due on any profits solely? i.e. on a single tax return - mine, or is it a requirement that she also starts a SA online. The profits from renting are going to be handled by me solely.

best regards

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Re:New Landlord startup

17/05/2019 12:08:54

Thanks for your question.

Property jointly owned by married couples or civil partners who live together is taxed in equal shares, unless you decide to split ownership differently. You both need to declare your share of the rental income and expenses and split rental profits and losses on a 50/50 basis.

Your wife will need to declare the income through Self Assessment if her share of the rental income is above £2500 after deducting allowable expenses or £10,000 before deducting allowable expenses.

You can find further information at:

Income Tax when you let property: work out your rental income

If you own the property in unequal shares, and are entitled to the income in the same unequal shares, the income can be taxed on that basis.

For further information, please see:

Declare beneficial interests in joint property and income