Rental income transfer

Hello, I own a property, mortgage free, solely in my name. I currently rent the property out and submit a self-assessment. My husband is the lower rate tax-payer, I am higher rate. I would like to transfer 50% of the rent to him. I have read so much conflicting information on this, please can you clarify what I need to do. Many thanks

Hi,
As you have stated that you solely own the property the starting point is that 'whoever has beneficial ownership of the property has beneficial ownership of the income.
Please refer to the guidance located at TSEM9160 - Ownership and income tax: legal background: ownership - income follows property
As the property is not held 'in joint names' then you would not have to make a formal Form 17 election.
Please therefore refer to the following guidance in respect of making a declaration of trust (to declare yours and your husband’s beneficial interests in the property), this would then enable you to transfer all/part of the rental income to your husband. TSEM9520 - Ownership and income tax: express trusts - written declaration.
You will not be required to submit the declaration to HMRC, however you must keep a copy for your records as this may be requested from you at a later date.
Thank you.

Hi, I do have a declaration of trust already in place whereby 50% of the rental income was transferred to my husband. After reading posts on here, I was concerned that I needed to have transferred part-ownership of the property through Land registry in order for that to be valid. Can I assign 50% of the property expenses to my husband or do they remain solely with me as the property owner? Also, does settlement rules apply between spouses and property income transfer? As if I transfer the income to my husband but am still liable for the tax on the income, what is the benefit to transferring the income? Many thanks

Hi ,
 

Thanks for your question. In the situation where you wish to transfer beneficial interests in a property, whilst retaining legal title, a Declaration of Trust should be completed alongside a form 17 is the property is jointly owned. Please refer to the following guidance for more advice: Trusts and taxes  . Advice regarding Settlements legislation refers here : TSEM4015 - Settlements legislation: effects of the settlements legislation   . Thank you .