Income Tax Question

[S6PNJ]

Having given what I believe is too much tax to the taxman over the last 5 years, I'm now going to try to minimise my tax return (for next year as I've already filed this years - plus its too late, even for next years return). So my question is this:

I own a property (mortgage and deeds etc in my name alone) that I used to live in while I was single. It is now rented out and I am now married and live in another house with my wife. I am a higher rate tax payer, she is a standard rate tax payer. How can I make the income from the rent her income and not mine. Is it simply a case of paying it into her bank account or do I have to transfer ownership of the house? (no worries, I don't think she is going to leave me). If it's simply a case of paying it into her bank account then I've been very silly (and remis) over the last few years and have given HM Gov far too much money (damn!). If I need to tranfer ownership then I need to find a good conveyancing solicitor fast!

[Eric Mc]

You need to legally transfer ownership to her.

You might want to consider having joint ownership rather than a full 100% transfer.

[S6PNJ]

Thanks Eric. If ownership remains joint, lets say 10:90, does that meant that the income is also split 10:90? I understand the reasons for keeping the property joint (I think) which is in case of divorce, but is there any other reason for joint ownership?

[Eric Mc]

There is more flexibility in dealing with Inheritance Tax issues as well. I am no expert in this area and you would need to talk to a solicitor or Inheritance Tax planning specialist to see what the best options are. Certainly, having the property 100% in your wife's name would allow her to declare the rental income on her tax return rather than yours.

The same would hold true for savings accounts, shares and other investments that you might hold in your name at the moment.

[S6PNJ]

Eric,

Again, many thanks - any Inheritance tax planning specialists here on PH that I could ask (or employ if needed)?