Property ownership and rental income

Hi, I am looking to buy a 2nd home to rent with some money left to me. There will not be a mortgage. I would like to have my husband as joint owner so if anything happens to me the house will automatically go to him but also to our kids should my husband have passed before me (tenants in common?) I am currently a sole trader who doesn't pay tax as I earn less than the threshold, my husband pays 40% tax so we want to make sure we use my tax threshold for the rental income. Firstly, Can we own the house 50/50 but have a different share of the rental income? Secondly, Do we need a declaration of trust to do this? Thirdly, how much expenses can we offset against the rental income? I'm assuming it works out in the same percentages as the income? Can we offset expenses paid to get the house ready for renting before it is actually rented? Do you have any other advice to help us get our head around this? Thanks

Hi,

When the joint owners of a property are husband and wife, profits and losses are treated as arising to them in equal shares unless both parties have signed a declaration stating their beneficial interests in both the property and the income arising from it differ. The declaration must be made on form 17, both parties must sign the decalaration or the standard 50:50 split will apply. The following guidance provides further information on evidence of beneficial ownership, such as a declaration of trust should be submitted along with the form 17.

TSEM9842 - Property held jointly by married couples or civil partners: Form 17 rule: introduction

Expenses claimed will be apportioned in line with the agreed beneficial interests in the income.

You can see information regarding the expenses incurred at the start of a rental business here:

PIM2505 - Beginning and end of a rental business: commencement

Thank you.