Landlord tax question

[Iwantscallops]

DH and I are just about to move into our new house. We are renting out our old house and intend to keep it for the long term. At prestent DH is a tax payer and I am a non tax paying student.

It has been suggested to us about the possibility of naming myself as the landlady and having the monthly rent paid into an account in my sole name.

Both properties and mortgages are in both mine an DH's name. Is it possible to do this? We are fully prepared to pay tax but if doing it this way is legal then obviously it would be mad not to.

Thanks in advance!

iirc think you can nominate a split of the income how you choose.

If you own the properties jointly AND are married then the income gets split 50/50. You have to formally decide (and notify HMRC) if you want to split it any other way. And in that case you have to have cause to split it any other way (i.e. your husband contributed more when purchasing, your ownership of the property is unequal etc). HMRC guidance on the topic is here

I think in addition to what Riksti has said you also have to change this formally on your deeds and with your lender.

One way round it is to form a partnership that owns the property and have a bank account in this trading name. In your partnership agreement you can record a 50:50 equity split and therefore 50:50 income, but include the ability for supernumeration (this can just be a simple document stating this). The if you do all the managing of the property you can declare yourself a supernumeration of any profit on the basis you have done all the work. Therefore using your tax free allowance.

You can use your tax free allowance against the rental income anyway; first you can write off your mortgage interest against the rent, and any professional fees from letting agents; works done to maintain the property, and buildings insurance, and then if any profit, use your tax free allowance.