Updating post from Reddit.
I've been a landlord for a number of years and have done my tax returns myself. The property is in my name and so have done my tax returns by completing my self assessment.
I recently got married and getting confused in the realms of what is possible. I saw on the HMRC website that through a deed of trust I can put all the rent in my wife's name (we will therefore only be paying tax of 20% as opposed to 40%)
However, the BTL mortgage is in my name and on my self assessment, the amount I pay for the mortgage gets added on to my basic rate allowance.
How should I proceed in this situation? Can I put all the rental income on my wife's self assessment and put the mortgage on my self assessment? This seems a bit cheeky and will alarms bell ring at HMRC that I am claiming the mortgage relief without any rental income?
I am happy to put it all in my wife's name but how would this work if the mortgage only has my name on it? If HMRC ask for evidence, will a the mortgage statement plus a marriage certificate be sufficient?
Sounds like you’d benefit from a financial advisor or get an accountant. We did. Similar circumstances to you. We searched and ended up liking the local TaxAssist office. They’re a franchise accountant owned model. We liked plenty of others but they suited us. We pay a smaller monthly fee which we don’t notice leaving, I put all the documents into a Proton Drive (encrypted) file they have secure access to and that’s it. Finance structuring etc, they advise on everything, they do our tax returns and we know we’re the right side of the law. Peace of mind and we can concentrate on other things we’re better at and enjoy more! Hope that helps.😊