New Guidance on Taxation of Property Income
Family, Divorce and Finances
In 2011 HMRC issued new guidance on the taxation of income from property.
On the whole, UK legislation deals with people who are married or in a civil partnership differently to those who are not. Generally income from a jointly held asset is taxed according to the respective interests of the beneficial owners. Couples in a legal partnership with an interest in an asset are taxed on a different basis.
The taxation of income produced from an asset owned jointly by a husband and wife was on the basis of a 50/50 split. Should that not reflect the actual situation and the parties hold the asset in unequal shares a declaration of that division can be made and taxation would then follow that declared split. The property must not only be owned in unequal shares but the income received must reflect those shares.
For non matrimonial joint assets there is no presumption of a 50/50 split if the couple are not in a legal relationship. HMRC will determine tax on the basis of who is entitled to the income.
Family Law Solicitors and Lawyers Eastbourne, Hailsham, Polegate, East Sussex
If you need advice on separation and your legal rights please contact our Family Law Department for a free initial appointment in Eastbourne 01323 727321, Hailsham 01323 841481 or Polegate 01323 487051.
