UK Landlord Forum / Life

Hi guys,
My wife and me are in different tax brackets. My maximum taxrate is 45% , while my wife's is 20%.

We are thinking to buy a buy-to-let property together. I know that the interest on the mortgage is tax-deductable. How can we split the rental income between ourselves ? Can we show that the full rent goes to her account and the full payment is made by me ?

Or does it have to be 50%-50% ?

Regards,
Salil

No

You can set up a partnership with any split you like.

But it needs to be done properly, and consistently, and you cant just cherry pick the bits you want to have, i.e. if its 75/25 then that should include an profit on sale / equity split on Divorce.

Hi Salil,

the best way is to transfer the property ownership to a foreign company and get the income over the dividend. Because of the regulations in Europe the dividend is taxable in the country of the company therefore it will not be taxable in the UK. Depending on the country only 30% will be taxable.
Depending on the country you come to a tax of around 10%-25%.