Rental Income Declaration of trust - joint tenancy

Hi There, My mum, my aunt and I are joint tenancy and would like to rent the property out, but my mum will be 100% beneficiary the rental income. Could my aunt and I write a declaration of trust to mention we are happy to transfer our beneficiary to my mum without solicitor to write it? If so, is there any template to use/ write? Do we need witness when writing the bare trust? Who can be the witness and how many witnesses required? Do we need to send the declaration of trust to HMRC or we just keep it and if one day HMRC ask then we can show it to HMRC instead? As my mum lives outside of the UK, is it ok that she is 100% beneficiary of the rental income, but I help her to pay the maintenance fee instead? Can she deduct maintenance fee etc when tax return? Thanks a lot!

Hi Annie Liang,

As you jointly own the property but wish for your mother to hold 100% of the beneficial interest in the property without transferring the legal title, then the Declaration may be created to show this.
Please see attached a link to guidance TSEM9520 which outlines the Declaration of Trust, as well as a template: TSEM9520 - Ownership and income tax: express trusts - written declaration. Please note that a Solicitor is not required when creating a Declaration of Trust, however, it is advised to seek legal advice to ensure your wishes are correctly reflected.
As well as this, it is not essential to send a copy to HMRC, however, keep a copy of the Trust as HMRC may ask to see this in future.
As you are joint owner of the property, you would still be able to help pay for the maintenance fee, although, your mother would only be able to claim as an expense her portion of the incurred expense.

Thank you.