So, you want to buy a buy-to-let property. In most cases, this means that you\u2019ll have to file a tax return on the income that you get from renting it out – but what does it mean if you buy the property jointly with someone else?<\/p>\n\n\n\n
It\u2019s a common question, and one you should know the answer to if you\u2019re looking to invest. <\/p>\n\n\n\n
Keep reading for the ins and outs of how tax works for joint property owners.<\/p>\n\n\n<\/div> \n\n
Our Making Tax Digital (MTD) software<\/strong> for landlords and sole-traders with built-in accountant support is now live. First month for free!<\/strong> If you live in the property you own and you only rent out a room or space within the house, you\u2019re covered by the Rent-a-Room scheme<\/a>. It lets you earn up to \u00a37,500 tax-free rental income per year. <\/p>\n\n\n\n Depending on where you live in the UK, this can be a big money saver. <\/p>\n\n\n\n You can use the Rent-a-Room scheme if you\u2019re:<\/p>\n\n\n\n Be aware though that the Rent-a-Room scheme applies to you both jointly, so your allowance as joint owners is \u00a33,750 each per year.<\/p>\n\n\n\n For any rent that exceeds the \u00a37,500, you\u2019ll both need to do a Self Assessment<\/a> and pay tax on the excess – but more on this later. <\/p>\n\n\n\n
\n<\/span><\/p>\n\n
We live in the rental property<\/h2>\n\n\n\n
Can the scheme be helpful to you?<\/h2>\n\n\n\n
\n
What’s the catch?<\/h2>\n\n\n\n