Can one person let out a property that is jointly owned?

[TellerTuesday]

Not sure if I should have posted this here or in property. Have been trawling the internet but still not actually sure so I wonder if anyone on here might have the answer, will obviously get anything confirmed with solicitor estate agent further down the line but just ideas at this stage.

DGran passed away recently. Her house have been left 50% to DM and myself. I would like to buy DM's share and save it for DD (currently 8) when she turns roughly 25.

DH & I will buy it and own jointly but we don't want DH to be a landlord for various reasons. He works away so isn't home & co-ordinating appointments for him to be here & sign things is a nightmare. Also he has a very complicated pay structure, different allowances, overtime at different rates etc. Luckily he is PAYE but the thought of him having to do tax returns scares the life out of me.

So basically can a property be owned jointly but only one owner be the landlord?

I don't think so, but you can opt for say 10% income to him and 90% to you for tax, which doesn't solve the tax return issue. Speak to an accountant.
If you use a letting agent, they can sign tenancy agreements for you, so no need for DH to be around.

This might help?

www.ts-p.co.uk/news/rental-income-should-the-husband-or-wife-receive-it

As for your DH working away etc, surely that is for the 2 of you to sort out together?

No, if it is jointly owned and you are married it is treated as 50:50 no matter what the split of ownership is (to prevent spouses transferring income to the lower tax payer).

If it is owned in a different proportion then you can elect to treat the income in that proportion eg80:20 but this is an election to split the income in proportion to ownership.

The only instance property income can be split by spouses differently to the above is if it is a furnished holiday let - there are lots of rules for these you would need to meet.

A tax return for your DH would be no more complicated than yours, you would put his P60 and P11d income on his tax return with the property income. If you are struggling with it you can use an accountant - would cost c£200 and the cost is tax deductible.

Unless your letting agent (assuming you use one) lives in the Dark Ages, everything is signed electronically. I’ve been letting a property since 2012 and have never physically signed a thing.

The tax return issue is pretty simple too, as PPs have said.

No, if it’s jointly owned then you are jointly the landlords. You both do a tax return.

The management of it doesn’t matter - he doesn’t need to get involved, you can arrange it all or get a letting agent to manage it for you.

The tax return is pretty simple too if he’s PAYE - he puts in his numbers from P60, then 50% of the rental income (minus any landlord allowances) and that’s that.