Registering a declaration of trust-rental income

Hello , my query relates to the following:- I own a property that i rent out. The property is in my name only. I have made a declaration of trust that states that my wife receives all the rent. Is the declaration of trust sufficient to allocate the rental income to my wife even though she is not the legal owner of the house? Do i need to register this declaration with hmrc via the trust registration portal? if not, then do i need to inform hmrc of the declaration of trust by letter and send the declaration of trust in? My wife will declare all rental income using self assessment. i await your response thanks

Hi,

When completing a declaration of trust, rental income may be assigned to a second party, in this case to your wife and would be sufficient to do so.

You can see guidance on this matter here:

TSEM9150 - Ownership and income tax: legal background: ownership: legal and beneficial ownership - separation

TSEM9520 - Ownership and income tax: express trusts - written declaration

Any rental income received by your wife is treated as hers for Income Tax purposes.

Thank you.

Hello. Can you please confirm if a declaration of trust in this situation (husband legal owner, wife beneficial owner of the rental income) need to registered with HMRC? Thanks

Hi ,
 

Yes it does but you need to send in a Form 17 with your Deed of Trust .  A Deed of Trust is not sufficient on its own in your situation .  It must be accompanied by a Form 17 . Thank you