Dear All,
If a rental property is held in joint names (husband & wife), what are the rules to apportion the profits, for tax purposes eg 50/50 ? I am interested in this with respect to one person being a higher rate tax payer & the second not.
Apportionmant of profit from BTL
Jul 20, 2003
1 Replies
It is in the same proportion as (beneficial) ownership is split. If they own the property in equal shares, then half the profit goes to each. But since spouses can gift each other stuff without tax implications, they can change the proportions to suit themselves, and so they can in effect make the split be whatever they want it to be, even 100 hers 0 his. In pratice it might look more reasonable if the split were less extreme and not chopped and changed too often.
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