Showing posts with label joint ownership. Show all posts
Showing posts with label joint ownership. Show all posts

Friday, May 24, 2013

Revenue taxation from properties held jointly

When a property is held in joint names, it is important to keep in mind that the tax treatment of revenue is different for married couples (or those in a civil partnership) and for unmarried couples. For unmarried couples, revenue is taxed in the beneficial split, i.e. whatever they have agreed between themselves. Where a couple who are married or in a civil partnership however have a jointly owned property, income arising from that property is assessed on the basis of equal entitlement rather than actual ownership, ie on a 50:50 basis. It is possible, to elect to have the income assessed in the ratio of beneficial (actual) ownership instead and this election is made on Form 17. The form can be downloaded here. The form must be submitted to HMRC within 60 days of being signed and must be accompanied by proof of ownership. The election cannot be backdated and is effective from the date on which the form is signed. It remains in force until the couple cease living together as a married couple/civil partners, or until the actual ownership changes. This election must be made to the tax offices dealing with both parties.