Tax as per Property Ownership Proportion?

I

Info_Seeker

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Hi Folks,

Can my spouse and I buy a property to let on 90% and 10% ownership split?

If we can, the mortgage interest relief and taxation on rent will also be allocated at 90% and 10%?

Thanks & Regards,
 
Is this part of a wider strategy based on legal and tax advice, or just something you thought up?
 
Probably got to do with one spouse being a higher rate tax payer and the other not working outside the home.
 
90:10 is almost too much effort for too little reward. Would it not be simpler for the 10% spouse to just buy 100%?
 
Bronte said:
Probably got to do with one spouse being a higher rate tax payer and the other not working outside the@ home.
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@Bronte Yes but if it is legal, what's wrong?
The higher tax rate spouse is paying 60K+ in taxes per year which, in most cases, is higher than two people working and paying taxes...
 
Info_Seeker said:
@T McGibney I have thought of this and asking for advice/suggestions here...
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So it's not part of an actual strategy?

Practically any permutation of ownership shares should be legal in the strict sense of the term but whether or not this is wise in your situation is only something that you can investigate with reference to your specific circumstances.
 
T McGibney said:
So it's not part of an actual strategy?

Practically any permutation of ownership shares should be legal in the strict sense of the term but whether or not this is wise in your situation is only something that you can investigate with reference to your specific circumstances.
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Thanks @T McGibney

REQUIREMENT to is keep tax bill on rental income low.

STRATEGY is to have 90% ownership and rental income for lower income spouse and 10% ownership and rental income for higher income spouse. The higher tax rate spouse is already paying 60K+ in taxes per year.

QUESTION: Would this strategy fly in BTL mortgage application?
 
Bronte said:
He won't be able to do that as his wife is not working and has no income. The bank will want them both to be owners. Now whether a bank would be amenable to such a situation, very much doubt it.
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I missed the mortgage requirement. Agreed, no chance.
 
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