My wife and I are considering buying another property (one bedroom flat) in joint names and renting it out. I am retired but receiving a pension - my wife works. We expect to receive approx £575 pcm - what are the tax implications.
System of Law: England-and-Wales
various sites on the internet.
Hi.If the property is in joint names, then the rental income should be split on a 50:50 basis for tax purposes. You will each need to complete annual tax returns to disclose your respective shares of the rental income and expenses unless your net share is less than £2,500 as stated here. Instead you should each contact the tax office for a P810 to complete. This form is not available for download.If your income is £2,500 or more, then you will need to register for self-assessment using a SA1 unless you are already registered for self-assessment.There are some useful notes here.Let me know if you have any further queries.
Inc Tax, CGT, Corp Tax, IHT, VAT.