Jointly owned property rental split

Hello, My Partner and I are not married and jointly own a property which we rent. Please can you advise: 1. We can agree a split for rental income regardless of our 50:50 ownership according to PIM1030 2. We don't need to enter into a declaration of trust to agree the share split 3. We can change the share split every tax year Thanks, B

Hi,

Where proeprty is held in joint names, it is presumed to be held beneficially as joint tennants. This presumption can be displaced by evidence to the contrary, such as a declaration of trust. You can see guidance here:

TSEM9230 - Ownership and income tax: legal background: joint ownership - presumption of joint tenancy

The amount can be changed each year.

Thank you.

Hi, Thank you for your response. My understanding from TSEM9230 is that to have a different split we need a declaration of trust. However in PIM1030 it says "But joint owners can agree a different division of profits and losses and so occasionally the share of the profits or losses will be different from the share in the property." It only mentions the need for a DOT for married couples. The question is, as joint owners and unmarried can we agree the share of income and expenses which might be different to a 50/50 split without having a DOT in place? Thanks

Hi B Robinson,
I can agree that as per the guidance at PIM1030 if you hold a joint property but are not married or in a civil partnership with the joint owner then you are not required to obtain a DOT. IE.The rental profits can be split in any way that the two of you agree. It may be prudent to have a written note of the agreed split but that would be your decision.  
Thank you.

 

Won't this arrangement be subject to settlements legislation (ITTOIA 2005, ss 625, 629)?