Splitting rental income

My wife and I have just bought a property that we’re intending to rent out. My wife doesn’t work so I was wondering if we could allocate all of the income to her. 

1st October 2015

If you live with a spouse or civil partner and have income from property you jointly own, by default the income will be allocated evenly between you. In contrast, if you are unmarried you are free to select the appropriate profit allocation you see fit.

However, there is Form 17 which allows married couples and civil partners to split the income according to ownership. You will need evidence to support your decision to make the share uneven though, such as a declaration or deed.

If you’d like to discuss this further, please do not hesitate to contact your local TaxAssist Accountant. They can discuss your affairs with you, complete the form on your behalf and may be able to put you in touch with a local solicitor to draw up a declaration or deed.

By Jo Nockels

Disclaimer: The information provided is based on current guidance (at date of publication) from HMRC and may be subject to change. Any advice shared here is intended to inform rather than advise. Taxpayer's circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this information, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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