Rental income question

[Hans_Gruber]

Quick question! I have 2 investment properties which I’ve owned for several years and declared the rental income. They are not owned as a limited company. I got married last year, my wife doesn’t own the properties with me and the tenancy agreement is not in her name.

The tenancy agreements are shortly due for renewal. If I add her name to them can I put the future rental income into her next year tax return, as she is a lower rate tax payer? (I don’t fancy transferring part ownership as I imagine there will be a liability to higher rate stamp duty). I’m assuming it would be stretching it to put 2022’s rent in her name.

Appreciate any help on here. I know I should ask my accountant but the poor man died last year and I havnt got round to setting up another!

Thank you

[Hammersia]

I don't know, but just in general moving large amounts of cash towards a new wife (not talking about you specifically) sounds a terrible idea.
Two properties can be well worth setting up a Ltd company for.

[Countdown]

I was in a similar position about 10 years ago. From memory I completed a form which transferred the Beneficial ownership to my wife
However (AIUI and IANAL) I believe this effectively transfers ownership to her as well so, if we fall out, she gets to keep the properties.

There is some info here.

https://community.hmrc.gov.uk/customerforums/ifp/0...

[Hans_Gruber]

Thank you for the replies - that’s very helpful and the link makes it clear that ownership is needed.

Luckily I didn’t get married as a way to reduce my tax liability then

[FunkyCEO]

It has some complications when I looked into doing this if the properties have a mortgage. You'll need to pay stamp duty etc