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My wife and I just bought a Buy to Let property. For the minimising

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My wife and I just bought a Buy to Let property. For the minimising the income tax purpose, will there be any difference if we register as ‘Joint Tenants’ or ‘Tenants in Common’? Both my wife and I have full time job. Thanks.

Hello, if you have any questions or need further clarification after reading my answer please let me know.

 

Thank you for your question...

 

Under separate taxation, you will each be taxed income tax on your share of the profit from property income, respectively. It would not make any difference whether the property is registered as Joint tenants or Tenants in Common.

 

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Customer: replied 3 years ago.


ok, thanks. so is it correct to say that under 'Joint Tenants' both of us will automatic share 50% of the property and hence 50% of the income, while under 'Tenants in common' we can decide what percentage share of the property hence income between us?


 


under 'Joint Tenants' can we put 100% income to one person and 0% to another person?


 


thanks


 

Charles, thank you for your reply.

These terms have more relevance when it comes to distribution of estate in the event of death of one of the partners.

For income tax purposes, HMRC normally treats income from property held in joint names as if it belonged to you in equal shares and tax each of you on half of the income.

If you wish this 50/50 split to be any different, then you make a declaration of beneficial interest by completing form 17.

More information on this can be found here

http://www.hmrc.gov.uk/forms/form17.pdf

I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page. If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.

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