Q.4 Jointly owned property and rental income – Anything tax-wise that we should know?
I am a pensioner receiving a state pension and a private pension. My wife is a foreign citizen who has a permanent UK residence permit. She pays no tax in the UK. We jointly own property in the UK and we are thinking of letting the property and living abroad. I understand tax is payable on rent received, but will I have to pay tax as my wife has no income in the UK? Will allowances cover tax due if the rent is between £1,000 and £15,000 a month?
Arthur Weller replies:
If the property is jointly owned, the rental income will be received 50:50. If the annual net rental income (i.e., gross rental income less allowable expenses) per individual is more than the personal allowance, there will be UK income tax to pay.
