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Posted Thu, 29 Aug 2019 13:31:39 GMT by HMRC Admin 1
I have recently placed my wife's name on the deeds of my rental property as 50/50 ownership and she is now no longer working due to the birth of our 2nd child. I have in previous years completed the self assessment tax return on behalf of myself as I was the sole owner. I would just like to understand how I can use my wife's income tax allowance to reduce the tax I pay on my rental income now she is a joint owner. Can I use my wife's full allowance to offset? Would both myself and my wife therefore be required to complete seperate self assessments at the end of each tax year?

Thank you for your question. Your wife will have to register for Self-Assessment and complete a Self-Assessment tax return if her share of the gross rental income exceeds £10000 or her share of the net rental income exceeds £2500. Please see further guidance at

SAM 100050

If this is her only income she would be able to offset her Personal Allowance against this. When you complete your Self-Assessment tax return you should only declare your share of the rental income. You cannot allocate any of your wife's unused Personal Allowance against your share of the rental income. I hope this helps.

Can I please just clarify further around my wife filing when you state " if her share of the gross rental income exceeds £10000 or her share of the net rental income exceeds £2500."?

GROSS rental income £1000 per month (£12k per annum). My wife's Tax free allowance £12,500.

Given my wife is not in employment, can the rental income simply not be taken into her personal allowance? or do I have to apply a 50/50 split so 6k assigned to me and 6k assigned to my wife? Its not clear what I am able to apportion to each of us?


If you now own the property in equal shares 50/50 you should each declare half of the income and half of the expenses, ie £6,000 as in your example.

Your wife's share will be covered by her personal allowances if she has no other taxable income.

Your share will be added to your other income and taxed at the appropriate rate.

The figures quoted of £10,000 and £2,500 relate to the criteria for self assessment. Your wife can transfer 10% of her personal allowances to you, if you meet the criteria.

Please note if you are liable to tax at a higher rate (40% or 45%) the transfer cannot take place.

This link explains how Marriage allowance transfer works:

Marriage Allowance

I also share rental properties with my wife. My wife does most of the work relating to the rentals, (checking the properties, cleaning, arranging maintenance etc.) can we split the income in unequal shares based on the share of the work although we own the property 50/50?

If you live with your spouse or civil partner and jointly own property, then you would normally each be taxed on 50% of any income arising from renting out the property. However, married couples and civil partners can, in certain circumstances, ask to be taxed on their actual entitlement to income from jointly held property based on actual share of ownership. They can do this by making a joint declaration of unequal beneficial interests on a form 17 and submitting this to HMRC together with evidence of the actual split of beneficial interests. Further information can be found on our website under the following links
Tsem9800

Declaration of Beneficial Intererst

Income would as you say be split 50/50 between a married couple or civil partnership with each of the partners needing to declare their share of income to HMRC. Although you cannot use your wife's unused allowances, there are occasions when a spouse or civil partner can opt to transfer 10% of his/her unused Personal Allowance to the other partner. This is the Marriage Allowance. Further information can be found on our website under the following link;
Marriage Allowance
 
Posted Sun, 31 Jan 2021 12:28:49 GMT by Ti0123
Me and my husband also have rental properties. One of the properties we own jointly. But I own a second rental 100% myself that I acquired after our marriage. But I am the only landlord, with legal responsibiliy of the house and conduct all rental activities etc. myself. I have also been employed until now but may not go back after my second child. Would I be able to put 50% of my rental income from 1st property and 100% of rental income from the property I own myself in my personal allowance?
Posted Sun, 31 Jan 2021 14:55:07 GMT by HMRC Admin 5
Hello.

You will declare the income from the properties as you state - 50% of the jointly owned, 100% of the sole ownership.
Your personal allowances would then be deducted and you would be taxable on any income over this. 

Thank You.
Posted Fri, 05 Feb 2021 10:20:42 GMT by Paul1981
Hello, thank you for this forum I find it very useful. I own 3 properties in the UK (two without mortgages) in my name only. I married last year, I would like to minimise my tax exposure by transferring shares and/ or ownership of one property to use her 12,500 GBP tax free allowance - she has no UK income at present. Currently I pay tax on my rental income above 12,500 GBP. I complete a tax return each year, I understand my wife will be required to complete one also after the transfer takes place. Please advise on the documents I am required to complete (HMRC/ Land registry) to make this process as smooth as possible. We live outside of the UK.
Posted Fri, 05 Feb 2021 12:45:41 GMT by HMRC Admin 2
Hi,

We are unable to provide legal advice on how to transfer the property into your wife's name.

Please see the attached link regarding Land Registry:

Registering land or property with HM Land Registry

For tax purposes if you transfer the beneficial ownership to your wife you will need to supply a form 17 and Declaration of Trust to HMRC:

TSEM9800

You have not indicated where you live or what nationality your wife is. You may need to check that she will be entitled to personal allowances against the income:

Digest of Double Taxation Treaties April 2018

Thank you.
Posted Mon, 08 Feb 2021 10:24:28 GMT by Paul1981
Thank you for the documents. I wish to clarify for tax purpose only. My wife is a UK national and is entitled to the tax free allowance. As I read form 17; a declaration should only be made if the individuals are beneficially entitled to the income in unequal shares. Is it not the case that from the date of marriage income will be automatical split between me and my spouse? Therefore we are each required to submit a self assessment to declare the split income and no further action is required?
Posted Tue, 09 Feb 2021 15:34:29 GMT by Amit K
Hi I am in a similar situation. Just want to clarify if I am doing this correctly. I am currently the sole owner for the Property that we rent. My wife is currently not working and has no income. As I fall in the high income tax bracket. I am looking to transfer (95%) of the rental income from the property to my wife so that we can benefit from her tax allowance. So to move in this direction, I understand the following are the steps to take. Step 1: Update the mortgage to add wife's name to the Mortgage Step 2: Update the Title Deeds to include wife as a joint owner. (Tenant in Common) Step 3: “Declaration of Trust” to set out the percentage the property /rental income for my wife. Step 4: Complete Form 17. Step 5: Rental income to be declared in proportion to the split in our individual tax returns. Am I approaching it correctly. Is there anything I am missing.? The property is currently valued at around 185,000 GBP (purchase price was 152,000 GBP)and outstanding mortgage is around 111,637 GBP. Mortgage provider has agreed to just port the existing mortgage to our joint name without any changes in terms or rate. We are not borrowing anything additional. Would there be any SDLT to be paid by my wife ? Thanks
Posted Tue, 09 Feb 2021 17:20:03 GMT by HMRC Admin 10
Hi Paul1981

Thank you for your question.

You are correct in your understanding how a split between spouses are usually assessed.

We always take that an asset is owned 50-50 between spouses unless we have been notified of a different split via form17.

Regards.
Posted Wed, 10 Feb 2021 11:42:40 GMT by HMRC Admin 2
Hi Amit K,

Please refer to the following guidance:

Declare beneficial interests in joint property and income

You will need to make a Form 17 election and then obtain a Declaration of Trust or similar. You would then only need to declare your own individual split of the rental property income on your individual tax returns.

Please contact the HMRC Stamp Duty Office about your question relating to your mortgage on your rental property:

Stamp Duty Land Tax

Thank you.
Posted Wed, 10 Feb 2021 14:00:08 GMT by HMRC Admin 5
Hello.

We do not deal with Stamp Duty Land Taxes on this forum.
Here is a link below with some information on SDLT or you may wish to contact them direct with your question
Stamp Duty Land Tax                                                             
Stamp duty and land tax helpline  0300 200 3510.

Thank You.
Posted Sun, 14 Feb 2021 01:44:45 GMT by ac2021
I own a property with my wife as ‘joint tenants’ and therefore we have an equal share of 50/50. However when it comes to the rental income I run and manage the property solely and so we have agreed I will take 100% of profits or losses from the rental income. As my wife has not received any rental income from the property does she still have to register for self assessment and submit a self assessment tax return?
Posted Sun, 14 Feb 2021 10:52:18 GMT by amarczuk
Hi, I have recently purchased my second residential rental property. As per government rules I need to register myself as a self employed. I also got full time job on top of that. Both of us live in UK since 2005. We share 50/50 profits on both of our properties For tax assesment reasons... should my wife be registered as self employed as well to participate in costs/ profits as well? Since we owned first property she was always doing her own self assesment but not sure how its gonna change her situation now. Does she need to register because she is co-owner? Please advise
Posted Wed, 17 Feb 2021 12:58:04 GMT by HMRC Admin 20
Hi ac2021,

If you jointly own the property with your wife and have income from property, you are normally taxed on an even split of income.

If you want to change the split from 50/50 you will need to complete form 17 to declare your beneficial interest in joint property, to do this follow the instructions on: 

Declare beneficial interests in joint property and income

Thank you.
Posted Wed, 17 Feb 2021 13:42:23 GMT by HMRC Admin 5
Hello amarczuk.

If your income from property rental income £2500.00 to £9999.00 after allowable expenses or £10000 or more before allowble expenses then you do need to register for self assessment and report your income on the property section of the tax return,
If your income from property is  between £1000 and £2500 a year and you do not already complete self assessment, you can contact HMRC and tell them how much you profit is that tax year.

Thank You.

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