Deed of Assignment

An individual owns 2 rental properties. He legally assigns by way of formal Deeds of Assignment the income (not underlying capital ie property ownership) to his adult son (one property) and his spouse (other property). Is the rental income taxable on the son and spouse or the property owner? Various commentaries suggest it is taxable on the property owner and thus the Deeds are ineffective for tax purposes however TSEM9170 seems to suggest a contrary opinion....that income does not follow property and therefore the rental income is taxable on the son and spouse in this case. Can you offer clarity?

Hi ,
 

Thank you for your question, the differing beneficial interests can be split between spouses but not through other 3rd parties or family members. Deed of assigment again would be effective for spousal  trust purposes but would not be suitable for other purposes please see further information  : Trusts, Settlements and Estates Manual    . Thank you .