I have a client who wants to give their son the money to buy a house and then he wants to let it out. He is a higher rate taxpayer, but his wife doesn't work so an allowance is there that isn't being used, but is there a way for the son/husband to have the house in his name, but the wife gets the rental income? How would the 'gift' from the parents be dealt with and also the wife having the income?

The parents can gift the money to the son (it will be a potentially exempt transfer for inheritance tax purposes), and he can buy the house in his name. If he wants his wife to have 50% of the income, he can add her name to the deeds. If he wants her to receive more than 50% of the income he will have to give her more of the beneficial ownership, and file a Form 17 with HMRC - see www.hmrc.gov.uk/manuals/tsemmanual/TSEM9800.htm. Alternatively, he can retain the property in his sole name, but just gift some or all of the beneficial ownership to his wife, perhaps using a declaration of trust - www.hmrc.gov.uk/manuals/tsemmanual/TSEM9520.htm.