MTD and Joint Property Owners: Who Has to Report?

If a rental property is jointly owned by two people, each owner is responsible for their own share of the property income for tax purposes.

For example, if two people own a property 50:50 and it generates £20,000 of rental profit, each person would normally have £10,000 included in their own property income.

Under Making Tax Digital for Income Tax, the key point is that the MTD obligation belongs to each individual taxpayer who meets the relevant income threshold. Joint ownership does not automatically mean that one owner can submit everything on behalf of both.

There are, however, specific easements for jointly owned property. Landlords can choose not to submit quarterly updates of expenses relating to jointly owned properties. These expenses still need to be included when the taxpayer finalises their tax position for the year.

So, if you own a rental property with someone else, make sure you know your share of the income and expenses and how your MTD obligations apply to you.