UK whose rental income is it

[avinashsa]

The house deed is on my name but I and my girlfriend (soon to be wife) were living in the property for a two years.. we have rented the property since august 2011

The tenancy agreement is in both are names..

Who does the income tax apply, i or my girlfriend

Please advice becuase my income is higher than my girlfriends and my tax advicer claims that the income is all mine when the simple fact is, it is not ..

Help appreciated

 

[Becky]

Hi avinashsa,

We will need a little more information here - what type of income are you talking about?

 

[AccountantSalary]

Are you currently renting the property out to someone and receiving income from him or her? To whom are the checks made out and where are they deposited?

 

[avinashsa]

Becky: I am purely talking about rental income..

Accountant salary: yes we are currently renting our property to someone. the amount is paid by Bacs payment into our joint account..

 

[Cheaper Accountant]

I would agree with your tax advisor. You own the property and the rental income should be treated as your income.

Has your tax advisor made sure that the rental income is reduced by all of your allowable expenses and allowances? For example, you are entitled to an annual wear and tear allowance. Maximising expenses and allowances will legitimately reduce the tax you pay on the rental income.

If you and your partner were to become business partners in the future, this can be structured to ensure that the income is distributed to you both to utilise both personal allowances, etc.

 

[CPAInsider]

Agreed, you would report the rental income on your taxes.

 

[Truemanbrown]

Because the property is fully in your name then you should be paying the tax on the income!

 

[AllanMadan]

Hi Avinashsa,

If you bought the property 100% and simply have your girlfriend in the tenancy agreement, you will be liable for all of the rental income. Income is usually split based on the equity contribution.

- Allan

 

[JustainMax]

I think Avinashsa is confused about his girlfriend's position on this regard..