Hi,
My wife and I are considering paying off our joint mortgage. We currently rent our house out that the mortgage is on, and we live in a rented property a few hundreds miles away where my wife works. My wife is a higher rate tax payer, but I'm a stay at home dad.
I know that I still get a tax free allowance £9440 this tax year, rising to £10,000 in the 2014 - 2015 tax year. What I want to know is, if we were to pay off our mortgage and then transfer the deeds of the house into my name only, would I then be permitted to use my tax free allowance on the income of our property, which is under £10,000 per year? Or by transferring the deeds to my name only, would that be seen as tax avoidance?
My wife and I are considering paying off our joint mortgage. We currently rent our house out that the mortgage is on, and we live in a rented property a few hundreds miles away where my wife works. My wife is a higher rate tax payer, but I'm a stay at home dad.
I know that I still get a tax free allowance £9440 this tax year, rising to £10,000 in the 2014 - 2015 tax year. What I want to know is, if we were to pay off our mortgage and then transfer the deeds of the house into my name only, would I then be permitted to use my tax free allowance on the income of our property, which is under £10,000 per year? Or by transferring the deeds to my name only, would that be seen as tax avoidance?