section 23 tax

[midland muck]

Hi all,
I have recently gotten married and both my wife and I have investment properties from before we were married. We also have a house in both our names which is our PPR. My investment property is a section 23 property and I am wondering whether we can take advantage of this to reduce tax payable on rental income from my wifes investment property. Do we need to get both properties registered in both our names first or is this considered to be the case by default now that we are married.

Thanks in advance for any comments!

 

[alfabeta]

Property remains in your name for the purpose of S23 Relief. IMO Clawback of relief claimed would occur if you transfer to joint name however never dealt with one where the transfer is to a spouse. You should seek professional advice regarding this is you wish to transfer the property to joint names.

 

[Corcaioch]

For the tax year following the year of marriage you can set the loss created by the Section 23 relief on your property against any profit arising on the rental from your wifes property. You don't need to change the registered names on the properties.