Tax return from jointly owned rental property

We (husband and wife) jointly own a property (50/50) for rent. My husband works and I don't. Can I complete the tax return (100%) for rental income or do we both have to fill in separate returns (50/50)? And if we both have to do it, then as regards the property income allowance (1000£), can we both use - 1000£ each or we have to divide it between the two of us ? Thanks in advance

Hi, I already found the answers. Just can't find how to delete the thread. :)

Hi,
We would advise in the first instance to complete a Form 17 to declare beneficial interests in the property based on the percentage split you wish to declare for each individual, i.e. in this instance, 0%/100% split.
We have attached a link to the Form 17 as well as guidance which may provide additional support on your situation:
TSEM9852
In regard to the Property Income Allowance, the £1000 allowance is given to each individual to use against business profits, or expenses, whichever is more beneficial to yourself.
Thankyou.

Thanks for your answer, very helpful.

Sorry, I read about the Form 17 and it says there : Please complete this form if you want to be taxed on your actual shares (known as `actual basis'). You'll also need to provide evidence that your beneficial interests in the property are unequal, for example a declaration or deed. When to fill in this form : -You can use this form to declare a beneficial interest if you hold property jointly and: -you actually own the property in unequal shares -you're entitled to the income arising in proportion to those shares -you want to be taxed on that basis But as I stated before we own this flat in equal shares -50/50. Does it mean that we can't use this form? Thanks in advance.

Hi I have a couple of rental properties, jointly owned with my wife. Property title fees show a 50/50 split, rental income tax is paid on a 50/50 split. If the rental properties title deeds are changed from a 50/50 split to either one of us owning 100% of the property. Would we still have to split the rental income reporting to HMRC 50/50? Or would just one of us have to declare the income?

In addition if the rental properties ownership is classed as beneficial joint tenants can form 17 be used to change the actual shares of the property

Hi,
If the rental property in question is jointly owned by a husband/wife or civil partners then the default method for dividing the rental income is 50/50.I
If you require a different percentage split then you will be required to complete a Form 17 and obtain a Deed of Trust in respect of the property.
If the property is  just jointly owned by any other person then  the percentage split of the rental income does not require a Form 17/Deed of Trust.
Thankyou.

So if the property is owned as ‘joint tenants’ and the joint tenants are husband and wife, how should the rental income be apportioned , should it be apportioned as 50/50 or can it be apportioned to just the husband and hence one person? Can you use form 17 to have a different split even if the property is owned as joint tenants? From what I have read, form 17 cannot be used for a property owned as joint tenants it can only be completed if the property is owned as tenants in common. Can you please confirm?

Hi sawk,
I refer you to line 702. Form 17 is when joint property is rented between husband & wife or Civil partners.
Thank you.

Hi sawk,
Thank you for your question of 18/01/2024. As joint tenants you have an equal share of the asset. as tenants in common you can unequal shares in the asset. Please refer to the .GOV website for further detail on this topic as husband and wife. You cannot request a Form 17 (though you are a married couple) if you are joint tenants. the choice is yours but please review the HMRC Form 17 criteria if you wish to consider this.
Thank you.

Thanks HMRC Admin 21 So for Joint tenants, is a a deed of Trust required to complete so that the share of property can be unequal eg. Split 70/30 or 100 to one person. Please can you confirm?

Hi,
We confirm that you will require a Deed of Trust to split the property income in unequal shares.
Further information can be found in the Trust, Settlement and Estates Manual in respect of property held jointly by married couples: Trusts, Settlements and Estates Manual
Thankyou.

In joint rental property(50% each), can expenses be shown as actuals? I.e if one partner is paying for all the expenses related to property maintenance etc then can one person show all the expenses and should this also be 50% each?

Hi Admin 8 Does the Deed of Trust once completed have to be sent to HMRC for your records? Please confirm

Question 1: repeating the question so that i can get both the answers: In joint rental property(50% each), can expenses be shown as actuals? I.e if one partner(spouse)is paying for all the expenses related to property maintenance etc then person who is paying for all the expenses should show in their tax return or should expenses also be 50% each irrespective of who id paying Question 2:Additional query: I have added Residential property finance cost (box 43) but there is no effect on tax. I was expecting that 20% of mortgage interest will be deducted from total tax as mortgage interest tax relief but it did not. Did I do anything wrong here?

Hi,
Income and expenditure should be declared according to ownership.  
As the property is owned 50/50, the expenses must be declared the same way. 
Thankyou.

Hi,
You will be required to provide evidence that your beneficial interests in a property are unequal e.g. a declaration or trust.
Further information is available at:
Declare beneficial interests in joint property and income
Thankyou.

Hi Vijay Sharma,
 In jointly rented property the expenses are shown as 50/50 irrespective of who pays them.
On your additional question it appears that you have completed the box correctly.
For more clarification we suggest you call HMRC on 0300 200 3310.
Thank you.