Self assessment

[harrismo]

My partner and I have bought our first BTL, I say 'our' because I couldn't get a mortgage on my own. He has no interest in the property, (was all my idea), So I manage it myself. My question is; will we both have to fill in a tax return, or just myself? I'm not working, retired on ill health grounds, so I receive DLA. Is there a chance this would stop when I inform the IR about the new rental income? Many thanks in advance.

[Editor]

You say your parnter has no interest in the property - I take it you mean no interest in managing it, as he obviously has a legal interest in it if he is part owner.
You can choose who receives the income from the proeprty. If you elect to receive the income yourself you will be the one who needs to declare it on your text return.
As far as I'm aware DLA is not means tested or dependent on income so should not be affected.

[harrismo]

Thank you Editor, just what I was hoping to hear. I was under the impression that we would both have to complete a tax return. Thanks again.

[TaxationPete]

If he is a joint owner then you will have to declare the rental income apportionment via a Form 17 within 60 days. this can apportion form 99:1 to 1:99. Him being a owner is advantagoues as it doubles the CGT allowance to 2 X £9,200 should you sell the property in the future. I would expect HMRC to issue sa forms against the two people detailed on the Form 17. If you was purely a guarantor on the mortgage and is not on the deeds then no SA requirement and you have lost the CG allowance. Regards Peter

[harrismo]

Thank you Peter. I will be calling my local tax office today, regarding your advice, thanks again for you input. Regards, Mo.

[Tax Accountant]

You can choose who receives the income from the property. If you elect to receive the income yourself you will be the one who needs to declare it on your text return



If he is a joint owner then you will have to declare the rental income apportionment via a Form 17 within 60 days. this can apportion form 99:1 to 1:99. Him being a owner is advantagoues as it doubles the CGT allowance to 2 X £9,200 should you sell the property in the future. I would expect HMRC to issue sa forms against the two people detailed on the Form 17. If you was purely a guarantor on the mortgage and is not on the deeds then no SA requirement and you have lost the CG allowance. Regards Peter

I don't agree with either reply above.

Where does it say that they can elect / choose who gets to declare how much?

Ramnik

[harrismo]

Your advice is more than welcome Ramnik, Please carry on.

[TaxationPete]

You are quite right a Form 17 is for married/cival partners and a Deed of Declaration can be used for married owners or partners. This apportions the ownership in the ratio desired for the income apportionment you can not just choose as a matter of convenience to reduce tax and you cannot have an owner at zero %. This is a complex area and requires specialist assitance to make this stand with HMRC.

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

I'm quitting for the day after a long phone call from a landlord who has had a wall fall down into his property and I also represent the adjacent properties landlord. How strange is that.

Regards Peter

[jeffrey]

Try not to live in Kent, then.

[harrismo]

So, do I take it that we both need to complete an SA ?