Jointly held property

There are special tax rules for jointly owned property for married couples and civil partners. The rules mean that you can’t simply decide between yourselves how you want to be taxed or, for example, just give the rental income to the member of the couple with the lower income. The tax rules say that income from jointly owned property must be split and taxed in equal shares. Only in exceptional circumstances can a different split be used. This is when the property is owned in unequal shares and so income is divided in the same proportion. There is guidance on these rules on the following links.

• http://www.hmrc.gov.uk/manuals/pimmanual/PIM1030.htm Jointly owned property
• http://www.hmrc.gov.uk/manuals/pimmanual/PIM1030.htm Joint ownership or common ownership
• http://www.hmrc.gov.uk/manuals/inmanual/IN143.htm declaration reflects reality