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My wife and I have a buy-to-let property held jointly. My understanding is that the profit from rental of this property should be split 50/50 for the purposes of income tax. If the profit per person is less than £2500 does this mean it is not liable to income tax?

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No it isn't exempt and I would like to know where you got this information from.

If the rental profit (gross income less allowable expenses) is less than £2,500 a year, and the gross rental income (before deduction of expenses) is less than £10,000 a year, you can ask HMRC to collect any tax due through your PAYE code. You would need to send the tax office a statement of your rental income and expenses each year. HMRC would then change your PAYE tax code to collect the additional tax from your employment or pension.

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    Source: my wife. Commencing smug mode
    – Gracie
    Commented Sep 15, 2015 at 7:50
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    This is a moderately common misunderstanding. Below £2500 in untaxed income (in any form) HMRC generally won't require you to do full on self-assessment, but they still require you to disclose and they absolutely will want any tax due. Commented Sep 16, 2015 at 10:23

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