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

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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.

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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







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

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