Can I Use My Wife's Personal Allowance to Claim Tax Relief?

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Can I Use My Wife's Personal Allowance to Claim Tax Relief?

Question
My wife & I jointly own one buy to let in equal proportion, 50/50. I pay tax at the standard rate. My wife is a non taxpayer. Can I use her personal allowance to claim tax relief on the income & I pay the remainder?

Arthur Says:
If the total taxable income is £10,000, and the property is owned 50:50, then £5,000 income belongs to each one of you, and one persons tax allowances cannot be used against anothers taxable income, even if the first one cannot utilise their whole allowance (there are exceptions to this rule, e.g. marriage allowance, but they are not relevant here).

You have the option of moving more of the ownership of the property into your wife's name, and informing the Revenue on a Form 17. This will shift more of the income into her name, and enable you to utilise all her income tax personal allowance.

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