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Should property be in joint names or not?


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We have inherited 50% of a property and are in the process of buying the other 50% and then renting the property out.

Can anyone give advice if it is better to put the property in joint names or not? I am a higher rate tax payer and my husband who is self employed is not, not sure if by putting in joint names that we would have to pay the higher rate tax on income.

Also on the flip side, if in joint names, there would be two lots of capital gains allowances (although we do not intend to sell the property for many years)

Any help appreciated


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The best approach may be to have the property in joint names but with the income split 99% in favour of the 20% taxpayer and 1% in favour of the 40% taxpayer. That way you minimise income tax but get the full benefit of any capital gains. There are forms & declarations that have to be submitted. Best to get your solicitor to deal with the admin work required......it usually costs an extra £200-£300 to set up.

If you just register the property in joint names then HMRC will assume a 50-50% split which won't benefit you.

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