Jump to content

Best structure for Basic rate tax payer and spouse who doesn’t have an income?


Recommended Posts

Hi, looking for some advice please on how to best structure our property portfolio. I’m a basic rate tax payer £33k income, my wife is a housewife with £3k taxable benefits income. We have remortgaged our residential property to release £150k of equity to start investing. How can we structure our first (joint) BTL property investment to take advantage of my wife’s income tax allowance? Would a declaration of trust and form 17 work given that my wife would not get a BTL mortgage on her own? How about us both becoming a Partnership and splitting the income via that route? Thanks for any help and advice.

Link to post

As long as the property is in joint names, then you will own the property jointly and enter into a Declaration of Trust to give your wife the majority of the beneficial ownership and income. A copy of the DOT needs to be submitted to HMRC with a Form 17 election for the income split to take effect.

Jagrup Lewis
Accountant & Client Manager

https://propertyhub.net/service/tax/

03_tax.png.a17b7d630c261775113e6f323730c943.png

 

 

 

 

We can only give general information on a public forum, and nothing in this post should be interpreted as advice. To speak to us about becoming a client and receiving bespoke advice, call us on 020 3936 2170 or email tax@propertyhub.net

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...