What I need to declare

[Gillian]

Hi

I would appreciate any advice. We rent out a room in our own home and have recently bought and let out a flat (both in joint names). As you do not need to declare our income under the rent a room scheme if it under £4250 (which it is), can one of us assume responsibility for this and the other assume responsibility for the flat with regard to income tax?

[plym77]

Hi Gillian

Apologies for the delay in replying - I have been on holiday.

Unless you have a declaration of trust with your husband or another official document that exchanges interests, then you each have todeclare your share of the rental income and expenses.

Rent a room is merely a tick on a self assessment return. The rental property income and expenses should be split between you.

If you are asking the question one spouse earns much higher than the other then there may be merit in looking at an uneven split of the rental property via a Declaration of Trust - this document would need to be prepared by a solicitor avoids the need to change the deeds.

I hope this helps

Sherena