My client is looking to transfer rental income to his spouse (As a lower rate tax payer). The property is currently owned jointly by himself and his spouse.
He however has requested whether they are able to retain their 50/50 interest in the property and only the income to be 99/1%.
Am I correct in thinking that this wouldn’t be possible? Would anyone be able to confirm this either way please?
Thank you in advance.
For a married couple who live together who own (ie both names on the legal title) a rental property, any rental income is statutorily split 50/50 [ITA 2007 s836}.
If a different division is required then the respective beneficial interests will need to be in line with the rental split. Thus, if a rental income split of 99/1 is required then the respective beneficial interest must also be held 99/1 [ITA 2007 s837].
Malcolm Finney