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I'm a SAHM landlady - any tax advice for me please?

(4 Posts)
CarolinaMoon Fri 17-Jun-05 12:35:17

dp and I own 2 flats jointly, which we rent out. Dp has just inherited another house which he is planning to rent out (poss through the local council). We also own the house we live in. Dp is a higher-rate taxpayer and I am now a SAHM, so the question is, is it worth rearranging all this so that we can get the benefit of my personal allowance and lower tax bands? And if so, what's the best way of doing it?

Prufrock Fri 17-Jun-05 13:26:46

No probably not - at least whilst he is your dp rather than dh. Any transfers of title to you would be counted as capital disposals on his behalf so he would have to pay CGT on the profit he has made on the properties (though it might be worth transfering the recently inherited property). If you were married he would be able to put all the properties in your name without incurring any CGT liability.
You can earn 4,895 at 0% tax, another 2,090 at 10% and another 30,310 at 22%.

actually jsut thought. If you have joint cash investments you can elect to have one of the named parties receive all of the interest for tax purposes. There might be some way for you to apply this to a property investment as well.

CarolinaMoon Fri 17-Jun-05 17:37:51

Thanks v much Prufrock. Is it still poss for non-married partners to have diff residences for CGT purposes do you know? i.e. so that he could nominate one of the flats as his residence for that year and transfer his share of it to me?

Also, do you know what the tax implications of us letting to me and me then subletting to the tenants would be? i.e. would that be a feasible way round it?

Prufrock Fri 17-Jun-05 18:05:04

I'm only an informed lay person Carolina - so don't take only my advice. You can definately have seperate residences, but it has to be legit - ie he has to have lived in his nominated residence recently (check the IR website for exact timeframes).

I wouldn't have thought your idea would work - if you paid him rent he would be taxed on that, and any rent you then received from tenants would count as your income and so be taxed again. You can't get away with you payinghim a nominal rent and then charging a full rent - IR take a very dim view of that.

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