Accountant Help – Renting Property

Quick question for any accountants out there. I have a mortgage and my dad is also on that mortgage. Is it possible to split the tax between the two of us? Although I essentially will be paying everything is this possible. My current salary means that with the rents I will be receiving will mean I am in the 40% tax bracket. Splitting the income means it comes just under. Any help and advice would be appreciated.

Anyone know where I can find a definitive list of allowable expenses and advice on how to fill out self assessment forms?

I’m not an accountant but have a few places I rent out.
It gets split 50/50 between me and the wife. Regardless of who’s name is on what mortgage.

Regards

Do you need a joint account?

I had a query about this recently, and from my understanding if there are two or more parties on the mortgage then the income can be split how you see fit, I.e all income to one none to the other. But interestingly if it is husband and wife then the income should be split 50/50, which seems a little unfair.

That has come from, a professional tax advice line and not he revenue help line.

Hope it helps.

Not the mortgage but the ownership of the property! If it is in joint names then yes, if not then no.

That’s interesting. At the moment the account the mortgage payments come out of is only in my name. Shall I set up a joint bank account?

Not the mortgage but the ownership of the property!

Agreed, should have worded it better, but in my experience, they have been one and the same, but can see it may not always be the case.

Kevster, I would also say its irrelevant how/where the mortgage payments come from.

hi, I am no expert on this one but I do let UK properties & do my taxes myself (without any issue btw).

If you look on Landlordzone.com I am pretty sure there’s a deed you can draw up between yourselves to assign the income split. If not, post on there they are very useful.

Make sure you are claiming all your allowances.

If only just over the threshold, is it worth worrying – 40% only applies to that small amount. Spend said amount on improvements/fittings and offset tax?

Had this a few times with both commercial and domestic properties. HMRC will normally accept a formal agreement drawn up by a solicitor stating the profit share and capital gains split. In this you can dictate that the profits from rent are split 70:30 to your father but the capital gain is 70:30 to yourself.
If your father then gives you money afterwards that is none of HMRC business so long as you have split the profits as per the agreement and declared such profits for taxing.