Property - rental income and tax relief

I have a property that I own solely. I currently have no mortgage on it. I intend to change it ownership into tenants in common with my wife. There will be no monetary consideration for this change to joint ownership hence I presume there will be no SDLT consideration as well. Further, We will put in place an express declaration of interest to transfer the beneficial interest in the property entirely to my wife as she currently does not work alongside filling Form 17 with the particular. 1. Does this suffice to allow me to transfer any future rental income to my wife for tax purpose? 2. If we then, secure a let-to-buy mortgage on this property, the interest on which will be paid by my wife through her rental income, can she claim tax relief on it through her self assessment?

Hi ,
 

Thank you for your question. As the property is owned solely by yourself, the Form 17 would not apply in your situation as this is used to declare beneficial interest in a property jointly owned. I would advise that on this matter that a Declaration of Trust may be completed outlining the beneficial interest within the property for rental income and expenses, using TSEM9160 as a starting point regarding income following property here: Trusts, Settlements and Estates Manual   . I would also advise that as your Wife would be making the mortgage payments, any interest accrued would be allowable to be declared by her within the SA105 UK Property section . Thank you .