Property in my name, can I split rental income with spouse

Hi,
 

Thank you for your question. As a Declaration of Trust is a legal document we are unable to advise you whether to do this yourself or seek legal advice.  Here is a link to information in our  Trust Settlements and Estates Manual: Trusts, Settlements and Estates Manual    . Thank you.

hi HMRC Admin, I believe 'Joint Owners' will need to severe the tenancy to be eligible to recieve different share of rental income, I am a 'joint owner' with my wife and I am thinking of transferring 100% beneficial ownership to her. Does this result in any SDLT ? Obviously the title deed with HM Land registry is not changing , we will keep the 'joint mortgage' and 'joint onwers' so effectively there is no transfer of mortgage to her and mortgage stays as is. As in no money is changing hands and debt is staying as common Regards

Hi,
 

Thank You for your question , please refer to my reply to your earlier question. Thank you.

I am in a similar situation. I manage my husband rented flat, it is in his name. Can the rent be paying in my bank account and I will do the tax paper work in January every year?

Hi
Thank you for your question.
If the property is solely owned by your husband, then unless there is a change in the beneficial interest in the property through a Declaration of Trust the rental profits will all be chargeable on your husband.
You can find further information regarding this in our Trust Settlements and Estates Manual at TSEM9150 - Ownership and income tax: legal background: ownership: legal and beneficial ownership - separation - HMRC internal manual - GOV.UK (www.gov.uk).
You will also need to consider the settlements legislation which is covered at TSEM4000 - Settlements legislation: contents - HMRC internal manual - GOV.UK (www.gov.uk).
Regards.

"

Dear HMRC Admin, I am my wife are 'Joint Tenants' and I intend to sign a declaration stating my wife will own 100% of beneficial wonership. 1) Do I need to send this declaration to HMRC? 2) D I also then need to fill in form 17 ,give DOT is effectively severance of Joint Tenancy fort ax purposes or my wife can simplay report 100% of rental income under her tax return?

Hi,

If you legally transfer ownership of your share of the property to your wife you would not have to provide evidence of this unless specifically asked to by HMRC,
nor would you need to complete a form 17 as that form is only relevant when the property is jointly owned.  

You would still need to declare your share of any income from property received up to the date of transfer of ownership.

Thank you.

Hi Team I purchased a property in 2010. Property is solely in my name. I have recently got married and would like to allocate 90 to 100% of rental income amd expenses to my wife. 1) is this possible? 2) would I need a deed or trust set up? 2)

Hello, My husband owns a property in his name only and the mortgage is the same, in his name only. If he rents the property, could he transfer 100% the rental income to me, through a Declaration of Trust, while the ownership remains in his name ? If yes, who would be responsible for paying the taxes from the rental income ? And who pays the taxes should have all the deductible expenses in his/her name ? Thank you.

Hi V100,

We have assumed that the property is still in your name only. It is possible to transfer some or all of the income to your wife. You can see more informatiom here:

TSEM9170 - Ownership and income tax: legal background: ownership income follows property - variation

Where the right to income is transferred and the transaction is not at arms lenght then the settlements legislation may apply. This states that the settlements legislation most commonly applies to arrangements involving a settlors spouse, civil partner or minor children. You can see information below:

TSEM4200 - Settlements legislation: settlor retains an interest

Your wife could only claim for the allowable expenses which she actually pays.

Most types of trusts now need to be registered with HMRC via the Trust Registration Service. You can find guidance on the registration requirements and how to register here:

Register a trust as a trustee

Thank you.

Hi

Cris05  ,   Thank you for your question. HMRC will consider the 'legal' owner to also be the 'beneficial' owner of the property  unless we receive evidence to the contrary, In your case is your husband  'enjoying ' the benefits of the income for the property. Or are you the sole beneficial owner. I have attached some guidance for you to read that may help: Trusts, Settlements and Estates Manual  and : TSEM6018 - Legal background to trusts & estates: the law in England & Wales - legal interest & equitable (beneficial) interest   and : TSEM9140 - Ownership and income tax: legal background: ownership: legal and beneficial ownership - interaction   . Thank you.

Hi, my wife and 1 have a rental property which is jointly owned 50/50. Currently my wife receives all the income. Do we need to show the rental profits equally on our tax returns or can my wife show just on hers?

A rental property is owned solely in husbands name purchased prior to marriage. Can they transfer equity and add the wife as a tenant in common with a share of the property either 50:50, 70:30 or 99:1 to wife and then file the deed of trust or tr1 to HMRC with a form 17?

Hi Am33
Thank you for your question.
A form 17 is only needed if the property is already held in joint name and you wish to declare an unequal share.
We would expect to see a valid declaration of trust showing the split.
With regards to tenants in common please see guidance below:
Joint property ownership

Hi,

As the property is jointly owned, any income and expenses  must be declared 50/50 so each of you must declare your share.

Thank you.

I am in Scotland and when I bought the flat we live in, the title deeds on my name. Do I need to change title deeds to give my wife major share of the property. As in future if I rent the property, I want the rent to be 100% declared by my wife in annual tax. Please do clearly suggest what needs to be done to achieve this?

My wife and I bought 5 buy to let properties, all the properties we bought after marriage, and all the properties are on my name only in Land Register. There is no mortgage on properties. My question is, are we both allowed 50/50 rental income and maintenance expenses in Tax returns even though my wife’s name is not in Land Register.

Hi S0787571
Thank you for your question.
A form 17 is only needed if the property is already held in joint name and you wish to declare an unequal share.
We would expect to see a valid declaration of trust showing the split.
With regards to tenants in common please see guidance below:
Joint property ownership

Hi THRaja
Thank you for your question.
If the properties are not jointly owned and in your sole name, all the income and expenditure would be reportable under yourself.