Property income share between unmarried couples

Hi We currently live in a property that I solely own. I looking to buy a house to move onto with my girlfriend. I want to assign beneficial interest in the flat that we live in today my partner (not married). Then when we move the flat is maintained and she receives 100% of the income. Do I simply draw up a deed of assignment as she current has no legal interest in the property. Also from CGT point of view there will be no consideration and it’s currently our home so will this negate any CGT implications? Thank you

Hi,
Yes you will need to have a deed of assignment in place if you wish your girlfriend to have beneficial interest in the property.
There is no CGT implications as you will be entitled to private residence relief as you were living in the property.
There may be CGT implications if the property is sold at a later date.
Thank you.
 

Thank you for your response. The service charges for the property etc are in my name, do I need to retain a share of the income to claim relief for these or can these costs be passed to my girlfriend as well? Also if I have to retain a percentage say 1% can I claim relief against 100% of the cost? Thanks

Hi Ashley,
Please refer to:
PIM1030 - Introduction: jointly owned property & partnerships
and
TSEM9210 - Ownership and income tax: legal background: joint ownership - joint tenants
For more information about joint tenants.
Thank you. 

Hi thank you, but the property isn’t joint ownership, I’m the sole owner and the income will be assigned via a deed of assignment. Do I need to retain an element of beneficial interest to reclaim tax against the service charges etc? Or can these costs be assigned too? Kind regards

Hi ,
 

Thank you for your question. Within this situation, if you hold no beneficial interest in said property and receive no rental income, then the same would apply to any expenses incurred as any declaration must reflect reality, in addition to there being no source of income to offset such expenses against. Thank you .

The rental income maybe subject to settlement legislation though and treated as yours if you own the property solely

If I sign over all beneficial interest with no clauses or conditions l, does that negate the risk of settlement legislation? Thanks

Hi Ashley,
Thank you for your question.
As per TSEM4355, if the gifting is not wholly, exclusively or substantially, does not include a right to income, then the legislation will not apply.
For a more in-depth investigation, please contact the Trusts department as this forum is only available to general queries:
TSEM4355 - Settlements legislation: summary - additional examples where settlements legislation does not apply
Trusts
Thank you. 

Hi, My mother and father used to part-own a property and each file self assessment for rental income (50/50). Me and my father staircased the property to 100% ownership and we solely own it together now, there's no split on the deed of how much share of the property we each own. How will we file self assessment, do we claim 50/50 of the income and expenses each? My income was like 30% of his at the time of filing for our new mortgage. Thanks,

Hi,
If the property is jointly held by you and your father, then you would split any income and expenses 50/50 and report this income through Self Assessment.
Thank you.