How do married couples split rental income for tax?

In 2026-27, married couples and civil partners living together are taxed 50:50 on rent from jointly owned property. If you own unequal shares, a Form 17 reaching HMRC within 60 days of signing switches the split to your real shares.

The 50:50 rule is in section 836 of the Income Tax Act 2007, and Form 17 comes from section 837. This page follows those sections and HMRC's manuals as checked on 16 October 2026. Unmarried co-owners follow different rules, covered further down.

The 50:50 rule

If a property is held in the names of a married couple or civil partners who live together, the law treats each of them as entitled to half the income. That applies even if one of you owns 70% or 99% of the property.

There are exceptions. The main ones are a valid Form 17, income that neither of you is beneficially entitled to, and a letting that is genuinely a partnership. Holiday lets used to be an exception too, but that ended with the furnished holiday lettings rules in April 2025.

When Form 17 can change the split

You can depart from 50:50 only if both of these are true:

• you actually own the property in unequal shares, or one of you owns all of it, and
• each person's share of the income is the same as their share of the property.

GOV.UK asks for evidence that your interests are unequal, for example a declaration or deed. HMRC's manual says a declaration cannot be made if you own the property as beneficial joint tenants, because joint tenants do not hold shares at all. Tenants in common, who each own a set share, can use it.

You cannot simply cancel a Form 17. It keeps running until one of those events happens, and even a small change in your shares ends it. If your shares change, you can sign a fresh one.

What this means for you

Take a married couple living together, outside Scotland, who own a flat as tenants in common: 90% belongs to Sam, who has no other income, and 10% to Alex, who earns a £60,000 salary. The flat brings in £15,000 rent with £2,000 of allowable expenses and no mortgage, so the profit is £13,000. The figures use 2026-27 rates and the £12,570 personal allowance.

If the shares were the other way round, with Alex owning 90%, a Form 17 would put £11,700 at 40% on Alex, which is £4,680. Making the declaration is a choice, so a couple in that position would usually leave the 50:50 rule in place. What you cannot do is declare shares you do not really own.

Each of you reports your own share on your own tax return. For Making Tax Digital, only your share counts towards your qualifying income, which the joint owners' MTD guide explains.

Unmarried co-owners

The 50:50 rule does not apply to unmarried partners, siblings or friends. HMRC's Property Income Manual says the share for tax normally matches each person's share of the property, but owners can agree a different split of profits. The share used for tax must be the one actually agreed, and it should stay consistent unless something clearly changes. No Form 17 is needed.

Steps to check your split

1. Find out how you own the property: as joint tenants or as tenants in common with set shares.
2. If you are married or civil partners living together and own it equally or as joint tenants, report 50:50 and stop there.
3. If you own unequal shares, gather the evidence, such as the declaration or deed.
4. Work out the tax both ways, using each person's other income.
5. If Form 17 helps, both sign it and make sure HMRC receives it within 60 days of the second signature.
6. Each put your share on your own return, and run the free MTD check on your own figure.

The landlord section has more guides for couples and joint owners.