J is for Joint ownership! - A to Z Accountancy Top Tips
If you are married, you often own assets jointly as a couple and therefore split the income or gains.
If you don’t then it may be beneficial for tax purposes to consider transferring, so they are jointly owned.
This does need to be done officially which can be a minor cost.
But there are many and often great savings in income tax, capital gains tax and even inheritance tax!
If assets such as property are in joint names, then any income received is share equally between the spouses.
J is for Joint ownership!
If the ownership isn’t equal, the income is still split equally unless an election is made to split the income in the same proportion as the ownership of the asset.
It is really worth considering both income levels and what would benefit you as a couple.
When it comes to selling the asset there are also benefits in the capital gain being split and utilizing both annual exemptions (personal allowance for CGT)
There are of course other aspects to consider, but if you think this would apply to you then get in touch.
Flo