Jon Golding assesses the benefits of being able to split property income between owners in tax-efficient ways.
The Autumn Budget on 26 November 2025 revealed more tax increase problems coming for those with property rental income streams. This follows on from the Renters’ Rights Act 2025 for property owners as now the government is also creating, from April 2027, increases in property rental income tax rates which will be the basic rate at 22%, the property higher rate will be 42%, and the property additional rate will be 47%.
This will create further additional tax liability for married couples and civil partners who mutually own rental property.
Shares of unequal shares
HMRC’s Property Income Manual (at PIM1035) states: ‘Where property is owned jointly by more than one person it is important to establish
