Transferring Rental Income to Wife (Deed of Assignment)

Hi,
We can confirm that a Deed of Assignment would be accepted by HMRC.
Thankyou.

In relation to a transfer of beneficial interest through a deed of assignment. Is there a requirement to fill in a a Stamp Duty Land Tax (SDLT) even if the transaction results in a nil return (With 50% (£200k) transfer to spouse with so below the £250K nil threshold)

Hello again, As stated above, I am a sole owner of a rental property. I also have a mortgage on the property which is in my name. I have now arrived a position that works for me. I will add my wife on the title deeds as 'tenants in common'. I will then remortgage the flat with both our names on the mortgage. The rental income will go to our joint account and the mortgage costs will be withdrawn from this account. I will also setup a deed of trust and transfer 99% of beneficial interest to my wife. Since the mortgage amount outstanding is £250k, I understand there are no SDLT outstanding. There is also no capital gains obligations when transferring assets between married couples. She has no income at the moment so she will be filing a self assessment and she will be eligible for mortgage relief. I will submit a form 17 with the above split along with the signed deed of trust to the HMRC. HMRC - Would this work? Is there anything else I need to do beyond this? Kind regards, Mark Steed

Hi,
We have attached some guidance which may answer your question, however if this does not help then  you will need to contact the HMRC stamp duty helpline on  0300 200 3510:
Stamp Duty Land Tax
Stamp Duty Land Tax Manual
Thankyou.

Hi,
Unfortunately we cannot comment on any queries relating to personal tax planning.
As you have stated tax relief in respect of any qualifying mortgage payments can only be claimed by the person who takes out the loan.
Please refer to the following guidance in respect of the requirement for the submission of a Form 17 and obtaining a Deed of Trust :
Declare beneficial interests in joint property and income
Thankyou

Good evening, I am the sole owner of a property and am looking to put in place a deed of assignment to give 100% of rental income to my sibling without changing the legal owner of the property. With the property under my legal name but all income going to my sibling, who is liable for income tax? Many thank to anyone who can clarify.

Hi paranoidpopcorn,
The legal owner is presumed to be the beneficial owner and will be liable for the income the beneficial owner gets i.e rent.
The legal owener and beneficial owner can be separated by a valid declaration of trust. 
Thank you. 

Thank you HMRC Admin 25 for your reply. Just to clarify, if I put in place a declaration of trust to give 100% of rental income to my sibling I will be the legal owner and my sibling would become the beneficial owner. In this case, with the declaration of trust instated, is the legal owner still the person liable for income tax? Or would my sibling, who would be appointed the beneficial owner by the declaration of trust, be liable for rental income tax? Thanks for taking the time to address this, I appreciate your insight.

Hi,

Yes, as your sibling is the beneficial owner they are liable to tax on the property and can claim any expenses.

Thank you. 

Hi, I know there are several postings on this but just wanted to clarify how it would work for my own position. I own 3 buy to let flats. I am the only person on the title deeds and the mortgage is in my name only as well. I would like to pass all of the rental income for 1 flat to my civil partner but still wish to retain ownership of the property. I’ve noted that a Declaration of Trust might achieve this. However I’ve seen on the forum that this might not apply in Scotland. Can this be clarified? I use a rental agent to manage the property. Is it sufficient that the funds are paid directly to either her bank account or a joint one. Or does she need to register with the rental agent as a landlord which would mean a whole tenancy agreement for the current tenant. Is there a minimum percentage of rental I would have to retain to qualify for any tax relief on the mortgage. I still do a tax return because of the other properties I own.

Hi Warren Burns

Thank you for your question. After some research I am unable to find guidance on this particular matter of a Scottish version of a declaration of trust.
There is disposition between spouses/cp but nothing relating to the beneficial income from property the other perosn legally owns and retains ownership too.
Id recommend you sought professional legal guidance in this case. If this is finally settled then I would expect your civil partner to register with HMRC as a landlord.
The other other aspects of tenancy agreement etc are legal questions which I cannot respond to.You will delcare any income from property you receive as usual. 

Thank you

Please help everything points to me needing to complete a deed of Assignment' to transfer beneficial ownership of net rent income from my property to let to my wife, but I cannot find it anywhere on GOV how can I find the form please?

Hi,

A deed of assignment is a legally binding agreement and as such it needs to be drawn up by a legal professional. There is no deed of assignment form on GOV.UK

Thank you.