Question:
I have a property in the UK which is rented out, and which has no tax deducted as it falls below my personal allowance. My Turkish wife and I are planning another property investment shortly, and plan to buy with cash and possibly rent out. What are the tax implications or benefits for us? As a foreign citizen, does my wife also have a personal tax allowance in the UK when making an investment? The property will be in both names on the deeds.
Arthur Weller replies:
If you look at: www.gov.uk/government/uploads/system/uploads/attachment_data/file/505157/sa109-notes_2016.pdf at pages RRN 4, 5 you can see that an individual who is both a national and a resident of Turkey is eligible for a UK income tax personal allowance. If your wife is UK resident, she will also be eligible for a personal allowance. You should plan the ownership of the two properties in a way that the income is received so that the personal allowance of both of you is used to the maximum.
