Meg Saksida outlines some pitfalls to avoid where investment property is jointly owned.
Andrew Carnegie once said, “The wise young [person] or wage earner of today invests his money in real estate”. He was also quoted as saying, “Ninety per cent of all millionaires become so through owning real estate”. Carnegie died in 1919, but what he said must be true, as property ownership remains one of the best investments a savvy investor can make.
However, unlike shareholdings where the fruits of the investments are dividends with their £2,000 nil tax rate and generously lower tax rates per tax band, rental income is taxed at either 20%, 40% or 45%, depending on the individual’s level of income. One can, therefore, understand the pressure on taxpayers to try and lessen this load in any way they can.
Share the burden
One option for