Deed of declaration - property owned as Joint tenants

Hi there, I’m looking for clarification on my situation. My wife and I own a property as joint tenants and intend to rent/let the flat out in the near future. In order to do so, we will be doing the following: 1. applying type A restriction to move to tenants in common 2. Creating a deed of trust to state beneficial ownership in 99:1 ratio to my wife. This is a gift and as we are joint holders of the mortgage I believe there is no SDLT to pay as there is no consideration. 3. All rental income and mortgage payments will go into/out of my wife’s account In this scenario, can my wife reclaims 100% of the mortgage interest deduction or is it 99% as per the deed of declaration.

Hi
Thank you for your question.
If you are joint owners of a mortgage then you will be entitled to claim joint interest mortgage relief based on your own relevant beneficial ownership.
For example 99% of the mortgage interest for your wife and 1% of your share of the mortgage interest relief.
This is held within the savings and investment manual reference 10030.
Relief for interest paid: general conditions