One of the most common topics discussed with clients is that of structuring property ownership and the taxation of rental income.
Where a property is rented out, any income (less deductible expenses) is subject to taxation. The beneficial owner(s) is liable for Income tax and not the legal owner although often they are the same.
You can use Form 17 from HMRC to tell them who is the legal owner of a property and who is the beneficial owner of the property. This means that if Husband and Wife own a rental property but one is a higher rate tax payer it might be beneficial to use form 17 to ensure that any income is taxed at the lower rate applicable.
There are rules and regulations around the use of form 17 and you should be aware of certain pitfalls as well as advantages.
For help and advice give Park Lane Accountants in Bath a call on 01225 701875 and we will take the time to take you through all aspects