Property ownership / BTL / Rental income allocation
Discussion
If the 99/1 split relates to a tenants in common ownership split then you assume correctly, i.e. rental income for husband/wife is split as per the ownership status.
However, if the property is owned via a joint tenancy then the split is assumed to be 50/50 for the spouses. To get the 99/1 split a declaration of trust is needed to change the allocation of rental income. That is if you don't want to change to tenants in common ownership.
But, don't forget there may be CGT implications at time of disposal if you do change ownership. Gains are taxed on the basis of beneficial ownership, not necessarily legal ownership.
These links have more details
http://www.taxation.co.uk/taxation/Articles/2012/0...
https://www.taxinsider.co.uk/600-How_to_Jointly_Ow...
However, if the property is owned via a joint tenancy then the split is assumed to be 50/50 for the spouses. To get the 99/1 split a declaration of trust is needed to change the allocation of rental income. That is if you don't want to change to tenants in common ownership.
But, don't forget there may be CGT implications at time of disposal if you do change ownership. Gains are taxed on the basis of beneficial ownership, not necessarily legal ownership.
These links have more details
http://www.taxation.co.uk/taxation/Articles/2012/0...
https://www.taxinsider.co.uk/600-How_to_Jointly_Ow...
Gassing Station | Finance | Top of Page | What's New | My Stuff