Is it possible to put one of our houses into my wifes name?

[Trevorleach]

Basically two houses, one we live in and other we rent out, my tax bill is not good, wife earns less than me.
So does anyone know what is involved in putting rental house in her name only?

 

[CompoSimmonite]

Best seeking proper advice

 

[ajlelectronics]

Basically two houses, one we live in and other we rent out, my tax bill is not good, wife earns less than me.
So does anyone know what is involved in putting rental house in her name only?

As said, get proper advice. However I can't see it making any difference to your tax bill. The ideal setup is for the letting business to be a partnership and the accounts will add together all the cobined income, deduct all expenses, then deduct both personal allowances to arrive at the taxable profit, split between you.

 

[julianf]

Just have your wife work for you as a secutairy and pay her a wage - it's what every MP does.

Edit :

I thought you could offset tax to your (married) wife anyway?

(we figured we did not need a pseudo-religuous ceremony, so the person whom I've been with in excess of 20 years, the joint mortgage holder here, and the mother of our daughter is not actually my "wife", hence being unsure about the offset)

 

[hotponyshoes]

It's only going to help if she's not using all her personal allowance or you are in the 40% bracket.

If that's the case then she just 'runs' the rental as a business and the rent gets paid to her. No need to mess about changing ownership of the house (as you are married so you can divide the income from it however you like)

Just check you are making enough profit from the rental first.
If you have enough expenses and she earns very little otherwise she might not have enough taxed income to offset all the expenses against when considering the tax relief against your income at 40%

 

[addjunkie]

As said, get proper advice. However I can't see it making any difference to your tax bill. The ideal setup is for the letting business to be a partnership and the accounts will add together all the cobined income, deduct all expenses, then deduct both personal allowances to arrive at the taxable profit, split between you.

This….you can then share profits and losses to who it suits best. You can transfer assets between husband and wife tax free. Suspect you should talk to a solicitor about the ownership transfer.

 

[colnerov]

This….you can then share profits and losses to who it suits best. You can transfer assets between husband and wife tax free. Suspect you should talk to a solicitor about the ownership transfer.

While you're there ask about changing your primary residence to 'tenants in common' from 'joint tenants', there could be inheritance tax advantages.

 

[addjunkie]

While you're there ask about changing your primary residence to 'tenants in common' from 'joint tenants', there could be inheritance tax advantages.

Loads of rabbit holes to go down with this, especially if you get into trusts and such to potentially avoid care costs.

But I will say IHT doesn't affect you, only your beneficiaries as you will be dead!

 

[atomant48]

Have you got a mortgage on the property ? If so, it complicates it. If not, it’s relatiely straight forward with the involvement of a solicitor.

 

[Trevorleach]

Thank you for all the replies.
To answer a few questions, yes owned outright, I am 7k into 40percent brkt PAYE stupid twonk that I am!
I am purely after paying as little tax as possible, mainly as I see the idiots upstairs wasting it non stop!
I will have a look around for some professional advice.

 

[RaceDiagnostics]

I had a solicitor change the name on our flat, was no bother and cost a couple of hundred.

 

[gaz1]

Basically two houses, one we live in and other we rent out, my tax bill is not good, wife earns less than me.
So does anyone know what is involved in putting rental house in her name only?

if you do she could walk away with them

if they are shared then you split them by x2 like you do when your married

 

[hotponyshoes]

Thank you for all the replies.
To answer a few questions, yes owned outright, I am 7k into 40percent brkt PAYE stupid twonk that I am!
I am purely after paying as little tax as possible, mainly as I see the idiots upstairs wasting it non stop!
I will have a look around for some professional advice.

Sounds like it would be worth taxing advantage of her lower tax rate then.
Especially if you make more than £7k from the rental as that will take you out of the higher bracket.
(Providing you ate not getting 40% relief on pension contributions over £7k a year?)

How is the rental property currently owned?
Joint tenants or tenants in common?