1st Friday
Tax Chat

Make sure your rental house is in order!

Make sure your rental house is in order!

If spouses jointly own a rental property it is common for the one who pays the least tax to declare rental profits to HMRC. 

However rental profits have to be taxed in accordance with the legal ownership of the properties, and so if you do this you must first formally transfer legal ownership.

In a recent HMRC tax case, the taxpayers failed with their claim that one spouse did all of the work in relation to the property portfolio and so earned all of the income. The taxation of the income was held to follow their legal ownership which was 50:50.

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