Rent sharing for joint property owners

Your tax circumstances can change each year. If you jointly own property that is rented out you can vary your respective share of the rental profits to suit your situation year on year.

It is an idea to give a greater share to the lower earning partner as they could well be paying tax at a lower rate. However, this loophole will not work for married couples or registered civil partnerships.

Here’s how to do it:
- before the beginning of the tax year record the profit shares that will apply for the year;
- ensure that the monies are paid into the right bank accounts to reflect the agreed profit shares;
- if the Tax man challenges you quote his own guide book to him - para PIM1030.

You can also rest assured that when you sell the property in the future, the gain is determined in accordance with your actual ownership - past profit shares have no impact.