Simple one this. We have a property that we rent out which is owned in joint names. My wife has recently stopped working and therefore I'd like to allocate the rental income to her for tax purposes. Is it just a case of filling in the tax return allocating 99% to her and 1% to me or is there something more "official" I need to do?
Thanks in advance.
No. The normal split for husband and wife is 50:50. You need to complete Form 17 for any other allocation and send it to your Tax Office within 60 days - it cannot be backdated.
Surely the rental income can only be apportioned in this way if the capital is as well.
tim
Read ==============If you and your husband or wife live together, we normally treat income from property held in joint names as if it belonged to the two of you in equal shares. Each of you is taxed on half the income. This rule applies even if you own the property in unequal shares. However, if you hold property jointly and · you actually own the property in unequal shares, and · you are entitled to the income arising in proportion to those shares, and · you want to be taxed on the actual basis you may make a declaration on this form, and we will tax the income on the 'actual basis'. Before you fill in this form, please read the notes below. ... You cannot make a declaration · unless the property and income are actually held by you in unequal shares. You cannot simply choose to have the income taxed on an unequal basis because you think it would be to your advantage · about income that is earned income (or, like furnished holiday lettings, treated as earned income) · about income from a trade or profession that you and your wife carry on in partnership · from 6 April 2004, about income arising from shares held in a close company (broadly, a company controlled by no more than five people) · about income which for tax purposes is treated as the income of a third party, even if the income arises from property held in the joint names of you and your husband or wife =========== Looks like I need to reallocate the capital.
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