Anyone know about income from rental property tax law?

[sellthesizzle]

Hi - just wondering if anyone can help with a tax question.

A married couple, one is a higher rate tax payer and owns a property (just in their name) that they rent out. Their spouse is a basic rare taxpayer - can they reduce their tax bill (and avoid other liabilities...) by declaring the rental income as belonging to the lower paid spouse?

Yes, but you have to change the legal ownership and split, i.e. the lower earning spouse would have to legally own a higher proportion of the property, and they'd then be taxed on that same higher proportion.

I don't think that advice is correct.... I'm pretty sure you don't need land reg records to mirror income from rental:

www.taxinsider.co.uk/how-to-jointly-own-a-property-5050-but-split-rental-income-9010

Actually this is what you need, a declaration of trust: www.twpaccounting.co.uk/blogs/splitting-rental-income-between-you-and-your-spousecivil-partner/

Yes a declaration of trust.

Thank you - do you know are there any long term implications around ownership or only those already afforded by marriage?

[quote Lasttraintolondon]I don't think that advice is correct.... I'm pretty sure you don't need land reg records to mirror income from rental:

www.taxinsider.co.uk/how-to-jointly-own-a-property-5050-but-split-rental-income-9010[/quote]
You need to change the legal ownership from joint tenants to tenants in common.

OP clearly states that the rental property is solely owned by her husband so the rental income is his.