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Posted Thu, 14 Mar 2024 10:04:38 GMT by John Leslie Crawford
Holding property in husbands sole name and ownership for several years ,then married in 22-23 Tax year. Husband paying Tax on 100% of profits for several years previously. Transfer part ownership to wife during the 23/24 Tax year. I believe profits will now be liable to 50/50 tax between self and wife . Is the 50/50 Taxation rule now applicable to the full Tax years profits or just from the date of notifying the Land Registry of the change of ownership to include the Wife?
Posted Mon, 18 Mar 2024 13:00:04 GMT by HMRC Admin 8 Response
Hi,
Income from property held jointly by married couples and civil partners is treated as beneficially owned by the individuals in equal shares under ITA/S836.  Consequently you are taxable on the income 50/50.This rule applies even you own the property in unequal shares.  
This will be from the date you legally owned part of that property not the date that you were married or from the start of the relevant tax year.  
You can receive the rental income in shares other than 50/50 if you complete a Form 17.
Thank you.

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