Tax Questions help please

[ned-999]

Hi can anyone help me please. Im renting my house out as from next month that I purchased jointly with my ex wife (separated). We both still own it.

1. Can we split the profit from the house 100% to 0% rather than 50% 50%. as the government web site says.

Jointly owned property - no partnership

Where there is no partnership, the share of any profit or loss arising from jointly owned property will

normally be the same as the share owned in the property being let. But joint owners can agree a different

division of profits and losses and so occasionally the share of the profits or losses will be different from the

share in the property. The share for tax purposes must be the same as the share actually agreed.

However, where the joint owners are husband and wife, or civil partners (which we are not), profits and losses are treated as

arising to them in equal shares

2. If my ex wife was to declare 50% of the rental income on government forms would that be gross or net.

3. Can I put in as an expense the double glassing windows cost from this year in to the next tax year as I will only be renting 5 months this year and so the cost of the window would be greater than any profit made.

Thanks if you can help me.

[Richlist]

1. Provided the property is registered in joint names the split is automatically defaulted to 50:50 .

To change this to 1:99 or greater you need to alter the split by a Declaration of Trust & then file a Form 17 with HMRC within 60 days. Get a property or conveyancing solicitor to deal with this for you.

2. Both. She will need to declare 50% of the income, 50% of the expenses & 50% of the resulting profit.

3. No. If the expense was incurred this tax year then it goes in this tax years accounts. Perhaps you should have planned the installation better to take advantage of the tax savings ?

[ned-999]

Thanks for the reply

[ned-999]

1. Provided the property is registered in joint names the split is automatically defaulted to 50:50 .

To change this to 1:99 or greater you need to alter the split by a Declaration of Trust & then file a Form 17 with HMRC within 60 days. Get a property or conveyancing solicitor to deal with this for you.

2. Both. She will need to declare 50% of the income, 50% of the expenses & 50% of the resulting profit.

3. No. If the expense was incurred this tax year then it goes in this tax years accounts. Perhaps you should have planned the installation better to take advantage of the tax savings ?

On the last point can I not carry the loss from the tax year to the next ??

[Richlist]

Usually yes but, as with most things involving tax its not simply black or white, it depends on a number of factors such as:

* Did you buy the property to let ?

* When ?.

* When did you incur the expense ?.

* When was the property first let. ?

* Has it ever been your main residence ?

[Chestnut]

When I looked into this some years ago, I believe the Declaration (that RL mentioned) also involved a Will change (if you both have one) and affected Inheritance Tax as a consequence. With likelihood of professional costs to do it correctly I dropped the idea.

[ned-999]

Usually yes but, as with most things involving tax its not simply black or white, it depends on a number of factors such as:

* Did you buy the property to let ?

* When ?.

* When did you incur the expense ?.

* When was the property first let. ?

* Has it ever been your main residence ?

Hi In answer.

No it was main residence until we moved out sept 2014

expense (double glazing) was also in September 2014

Property will be let 31/10/14

Thanks

.

[Richlist]

If the windows went in before the property became part of your rental business then I'd expect HMRC to refuse to allow the expense to be offset against income.