Deed of Assignment for rental income transfer in Scotland

I am the sole owner of a mortgaged rental property located in Scotland and I would like to transfer the rental income to my husband. After consulting with several solicitors in Glasgow regarding the creation of a Deed of Assignment for this purpose, I have been informed that this legal instrument is not recognised in Scotland. I was advised that i must add my husband’s name on my mortgage account and the title deed. Given this information, I would like to request further clarification on the following points: 1) Is the Deed of assignment a valid legal document for rental income transfer in Scotland? 2) If it is permissible, am I able to draft a Deed of Assignment without the assistance of a solicitor, considering the current unavailability nearby of legal professionals to handle this matter. Or can I seek help from a solicitor in England? 3)Upon the successful creation of assignment, what is the correct procedure for submitting it to HMRC, and are there any specific guidelines I should follow in this submission? I am seeking these details to ensure compliance with all legal and regulatory obligations. Your guidance on this matter would be greatly appreciated. Thank you. Regards

Hi

HMRC cannot advise on your legal choices nor legal issues.

I strongly advise you refer to Declare beneficial interests in joint property and income.

In typical claims the Form 17 is witnessed as a declaration of trust to be signed by a third party and need not be a legally prepared document. This is the claimant’s choice.

Thank you

Thank you very much for your advice-much appreciated. I pay the mortgage to the rental property and own the property solely. I have another question: If I transfer 90% rental income to my husband, and 10% rental income remains under my name. Can i please confirm that 1) can I claim the "full" mortgage interest relief regardless of how much is my share of Rental income 2) or I only can claim the mortgage interest relief partially, in proportion to the income distribution. Thank you very much.

Hi, I'm not HMRC Admin and I can't see your most recent reply but the reason it can't be done in Scotland is because Scottish law doesn't recognise a separation of beneficial interest from the legal interest like England & Wales do. So in order to transfer any beneficial interest (such as the right to receive a share on disposal or to receive rental income from letting it) you must transfer the legal interest too.

Hi Qiman,
If you are the person paying the mortgage then you can claim the full mortgage interest relief against your share of the income.
Thank you.