Property

Hi One jointly owned property with his/her parents in the 2022/23 financial year which was rented out to tenants, however for personal reasons an individual was removed from the deed in mid-September. Since then the two remaining individuals have co-owned the property. For taxable rental income, is it correct to 1) Divide all income in the financial year by 3, or 2) Divide the income before mid-September by 3, but any income after that is divided by 2 due to the reduction of owners? For expenses, is it also correct to 1) Divide all expenses in the financial year by 3, or 2) Divide the expenses before mid-September by 3, but any expenses after that are divided by 2 due to the reduction of owners? The written guidance on this is unclear, so your expertise would be greatly appreciated.

Hi,

Usually, an individual's share from the jointly owned property will be included as part of their personal rental business profit. Individuals who have jointly owned property should know who is keeping the records and have access to them. They are personally responsible for including their share of the income in their own tax return even if they agree that someone else will keep the records.

In this case, income, and expenses, received to mid September is split 3 ways and thereafter in 2 ways. Further information is available here:

PIM1030 - Introduction: jointly owned property & partnerships

Thank you.