Deed of Assignment Rental Claim

Hi, my husband is a sole owner of a property which he has a BTL mortgage, and we have a deed of assignment in place to transfer 75% of the rental income to me. Say we have a total £10,000 rental income per year, he will claim £2500 and I will claim £7500. Upon doing tax returns: 1. Do we each get £1000 personal allowances? 2.Can he claim 20% of mortgage interest relief on his £2500? 3.For £1000 expenses (eg. bills, management fee), does he claim £250 in his and I claim £750 in mine? Thanks.

Hi
Thank you for your question.
1.    I believe you’re referring to the property income allowance, if so, yes you both would get this.
However, if you claim this you cannot claim any other expenditure or mortgage interest. 
2 and 3. All income and expenditure would be apportioned to the percentage you’re beneficially entitled to.
In your example 75% and 25%.
 

Hi thanks for the reply. Just one follow on question: If we choose to not use property allowance but to deduct 20% of mortgage interest instead, as the mortgage was taken out by my husband only, do we still each claim it as apportioned to the percentage?

Hi
Thank you for your question.
If you choose to not claim the £1000 property income allowance you are both entitled to as it may not be as beneficial to yourselves as claiming the 20% of mortgage interest, then yes you would be correct, the mortgage interest would need to be apportioned to the deed of assignment allocation of 75% to yourself and the remaining 25% to your husband.

Hi,
You need a Form 17 & Deed of Trust or Deed of Assignment.  No there are no legal requirements for this to be drafted by a Solicitor however there must be a witness.  
When an individual executes a deed their signature must be witnessed.  A party to a deed cannot be a witness to another signature to that deed. Legislation does not prohibit a signatory’s spouse, co-habitee or civil partner from acting as a witness and it is also generally acceptable for an employee of a party to witness that partys' signature.  
However it is best to ensure independent witnesses are sought to ensure unbiased evidence can be provided if and when required.  
The Deed of assignment has to be sent to HMRC with a Form 17.
Thank you.

Hi Admin team, I am the sole owner of a property and have transferred 100% of the rental income to my wife via a Deed of Assignment. I would like to know if my wife can claim 100% of the expenses related to generating this rental income, such as service charges and letting agent fees, on her tax return. Thank you and best regards.

Does the deed of assignment need to be registered on government trust registration site .?

Hi Gazahawk25,
Thank you for your question.
You are required to submit a Deed of Trust and form 17 (if a married couple or civil partnership). As each party must have a beneficial interest in the property.
Thank you.

Hi John2023,
Thank you for your question.
I am sorry to inform you that you must submit a Deed of Trust together with form 17. The reason for this is that your wife must be a beneficial owner of the property, At that point she will be able to receive the income and claim any relevant expenses that may arise.
Thank you.