Money Lesson Couple

Rental income, whose tax?

You are buying a flat to let, and the mortgage offer, the rent and the price are the same whichever of you signs for it. The tax is not, and for a couple with different salaries the gap is bigger than anything a better rate would win you.

Employment Property Savings Account ISA Investments Expenses

Buy it in the lower earner's name

3 Goals

The flat, the mortgage and the rent belong to the basic-rate partner.

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Employment Property Savings Account ISA Investments Expenses

Buy it in the higher earner's name

3 Goals

The obvious choice, the one who earns more and looks like the better borrower.

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Buy it in the lower earner's name Buy it in the higher earner's name

Putting the flat in the lower earner's name leaves this couple ~£161.9k better off, once the interest relief rules are paid.