Deed of Assignment- Split rental Income with Spouse

Dear All, I am the Legal and sole owner of one of my Rental Property and I want split the rental income with my wife. So far, I have established that I dont need to complete the Form 17 as the property is JUST in my name. Also, I have established that a Deed of Assignment is what is required here. I am intending to split the rental income from this property in 90:10 ratio where by wife gets 90% share and files the tax accordingly and i do for the rest of 10%. My queries are - 1) Could you please confirm that Deed of Assignment is sufficient here in my case and No need for form 17? And I don't need to send it to HMRC? I just need to keep it as evidence and provide to HMRC if they ask for it? 2) That this Deed needs to clearly specify the agreed split with all our details, the property 's details, Effective date from, signed and witnessed??? 3) Me as the Legal owner is responsible for paying all the expenses and running costs like - Mortgage, Estate Agent's Fee, Building Insurance and any maintenance costs as they occur. So, who can claim for these expenses? Is it ONLY me who can claim all these expenses against the Income that I will continue to receive? Or, do these expenses are also apportioned and claimed in accordance with the agreed split in the Deed?? If expenses are also apportioned in the same way as Income, is it a good idea to specify this in the Deed of Assignment to avoid any confusion in the future? I would really appreciate if the above queries could be confirmed as so far there have been some confusing and contradicting answers. Look forward to hearing from you soon. Thanks

Hi
Thank you for your question.
Question 1 - You do not need to submit a form 17 if the property is not jointly owned.
You will not need to submit a copy of the deed of assignment, however you should keep one safe if it is requested by HMRC.
Question 2 - The Deed needs to clearly show the split both parties names, signed by both parties.
It should be witnessed and have an effective start from date.
Question 3- Expenses such as running costs and maintenance can be apportioned between both parties from the effective from date.
However the mortgage interest can only be claimed by yourself if the mortgage is in your name and you are the 'owner' of the loan.
You cannot apportion mortgage interest relief unless the mortgage is in joint names.
Please refer to this link in the savings and investment manual.
Relief for interest paid: general conditions: the claimant

Thank you for clarifying all my queries, its very clear now. Just one last query please regarding the mortgage interest relief - as the mortgage is only in my name and i am the sole owner of the property, can i please confirm that i can claim the “full” mortgage interest relief regardless of how much is my share of rental income is according to the Deed?

Hi,
 

Thank you for your question. As you are the sole owner and the mortgage is in your name, you are correct you would claim the full mortgage interest at the basic rate of relief. Thanks

Suhel Kidawi, I am in a same position as you, would you be able to tell the format of the form you have used or from where did you get it please?