Buy to Let taxation - Income Tax
Many married couples that enter the buy to let market need to consider the full tax implications, as the Inland Revenue treats rental income like any other income. Anyone receiving this income should declare it but remember that everyone may earn up to £4,745 in this tax year before paying income tax. So, if your wife’s income, including her share of buy-to-let profit is less than this figure, then she will not have any income tax to pay to the Inland Revenue.

Buy to Let Taxation - Income Tax - Consider if it may be worth having all the rental income paid to your non tax-paying wife, rather than to your joint bank account. For the couple that have a 40% tax payer in the equation, in theory that would mean you would avoid paying higher-rate tax on your share of the rental income but do remember that this will not wash with the Inland Revenue unless you transfer the property into your wife’s sole ownership. Without such a transfer, the Revenue treats married couples as owning assets 50-50 sharing their income accordingly.

Capital Gains Tax - Buy to Let Taxation
For capital gains there are generous tax breaks for people selling investment properties that were once their main homes. You will not pay capital gains tax on house-price growth in the time you were living in the property, nor do you pay it on gains made in the final three years you owned the property, regardless of when you lived there. These tax breaks dramatically reduce the capital gains tax bill you might expect to pay. Under current legislation, you can also take advantage of Private Residence Relief lettings exemption that can knock up to another £40,000 per owner from the capital gain the Revenue looks at for tax purposes. Private Residence Relief is complex and should be handled by competent accountants but for starters, look at Help sheet IR 283 from the Inland Revenue or speak to an accountant who knows about property. So remember, if you ever lived in a rental property you are selling, there are lots of tax breaks. These tax breaks can give the first time investors the extra cash they need to climb the buy-to-let property ladder and invest the left over profit in another property. - CLICK HERE - to view the Cheapest UK Buy to Let Remortgage Rates and buy to let taxation