UK Landlord Forum / Life

Is it possible for me to transfer ownership of my rental property to my spouse as I would just creep into the 40% tax bracket this year if I include the [low] rental income? I already have the rental paid into my spouse's individual bank account and not mine. 

Also I need to get an accountant and I'm not sure whether I need to get a local one or whether this matters in this day and age of instant communication?  Any ideas what sort of price I would pay for their services [which I understand I can claim back anyway] and does anyone have any recommendations. 
Many thanks

1. Has it all gone against your income previously?
2. Is the property in Joint or sole names that is being rented.
3. If you can join a forum you can complete self assessment online. But it is your choice.
4. If you decide the income is your wifes, you and your wife will have to complete self assessment tax returns for many many many years.
5. Is this acceptable just  to save 15% of you defined "small income"?

Thanks, answers are:
1. Rental income [such as it was] assessed in my name/against my income previously.
2. Property is in my name only [heard I could write a deed of ownership letter to spouse to 'transfer']
3. I've done a self assessment online recently = as I hadn't previously declared the rental as I calculated I hadn't made any profit in the first two years [don't ask!] and I did this through the amnesty thing.  They've just written to me and don't agree with my assessment! aargh. 
4. If I don't put it in my spouse's name - then I will have to complete self assessment tax returns for future years - so thought if one of us has got to do it - better in spouse's name as they are on the 20% [well we both are but as I say I will just creep over into the 40% if I include last year's and future year's rentals.
5. I thought any savings would be better than nothing given I'm going to have to fill in at least one self assessment form. Are you saying that if I transfer into spouse's name - that I have to fill in a self assessment as well as my spouse? thought it would only be the person who receives the rental?  Wouldn't it be 20% increase in tax?

Many thanks for any help.

Hi

No once you have done one you will have to keep doing them.

Even if its just reporting your earned income, they will normally keep asking, as its a computer thing.

So if you start doing it for your wife then you will have to do two.

Given they don't agree with your assessment I would seriously not try and be clever now and move it to your wife. That is just my opinion.

Although you could speak to them and say "oh sorry the income is joint and has been from day one" This might be accepted, do your letter but dated from when you stared renting it.

Substance over form and all that, best to be consistent than switch it when it suits you I think.

Hi Boboff
Many thanks for your response, I will heed your advice, as you can see - this is keeping me up at nights - along with the pesky tenants who are now trying to duck out of their 12 month tenancy on the grounds that I have breached the tenancy by taking 9 days to have a brand new energy efficient boiler fitted [with full service contract] after the breakdown of the old boiler. They had an alternative electric shower so hot water and alternative electric heating but oh no - methinks they are splitting up or moving jobs and want an excuse to get out of the agreement but it's all a hard slog isn't it? oh well - best get to bed - thanks again everyone for the help. much appreciated.