Diesel

When my g/f and I bought a house together I kept my previous flat on to let out. I thought it would be a better investment than my useless Pension…!

So now g/f is preggers and not working – claims some of my 'tax back' as dole too!

Now any income from the rental will be taxed at 40% in my name, but she has a currently unused personal allowance and anything over would be at 25%...

Q is it possible to ‘assign’ this income to her without changing the house deeds? And also will it kill her dole if revealed?

It seems that any effort/initiative you make gets you clobbered for tax, and its just take take take – they wont even reduce the Council Tax which we once contributed to equally since I earn over 20k… It is therefore my sole £1700 responsibility even though we are not married and gain no married couples’ tax allowance etc. And its just a small 3 bed bloody house with 2.7 people in it!

Anyway, any advice to minimise the ole’ tax liability would be kindly received . Maybe someone cane point me in the right direction of a good book on this & letting maybe?

carl

I don't like to break this to you, but there is no married couples tax allowance any more

Old_Fart

Yeah I don't think there is any legitimate way of paying her the rent, and letting her claim dole whilst paying lower tax on the rental income. My wife doesn't work, but she reduces my tax by spending as much of what I make as possible, ensuring I can't invest anything and be liable for capital gains
Chuck

Diesel

LOL at you 2!

After I posted it I caught a chartered accountant down the pub (sorry mate)! Said to set up a company with her (allocate profits) or better set up a trust (again allocate profits) or better still an offshore trust (avoids CGT). I need to find a trusty foreigner to hold the cash and avoid CGT whan I sell it!

What a bloody palaver to hang on to a bit of yer cash this is gonna be!

What happened to married couples' allowance - last time I was married I got this!!!!!!!

D

jasey

Diesel,

If you can't find a trusty foreigner you can give me all your money and I'll **** off anywhere you want with it

Leslie

Using your wife's unused tax allowance was stopped as one of those stealth taxes that they did not say anything about at the time. You just realised they had done it in the following tax year. Even the IRS did not want to discuss it-just said that they were not able to transfer it to the husband anymore.

Les

Diesel

Thanks Leslie - that's what happened. Seems pretty unfair to me (shock horror). I wont be screwed by the bas'ds and will set up a dormant lobster fishing firm in the Turks & Caicos or something to hold any meagre profit I might make!

JoanUK300

Get her to go to the DSS and tell them she is living in this flat and can no longer afford the rent, providing she goes on Income Support they will pay the rent....in theory this works, as lots of my ex neighbours are doing this and they `rent` these properties from their relatives!!!!!!
So don`t see why you can`t do the same!!!11

Joan.