taxation of rental property for unmarried partners

Hi, I recently divorced my wife and so solely own property that I am renting out. I have a long term partner that I am not married to who also submits a Self Assessment Tax Return as part of her cleaning business. Can I apportion some of the rental income to her considering we are not married and she is not named on the deeds if I submit a Form 17 along with the associated Declaration of Trust please? She supports my in running the rental business and so this is a natural split of income

Hi ,
 

The Form 17 is for married couples and civil partners who both have an interest in a property. As you and your girlfriend are unmarried / not in a civil partnership, and as you are the sole owner of the property in question, you are responsible for reporting 100% of the rental income to HMRC and you are required to pay any tax that may be due. Domestic partners will often share income within the household, but the tax position is always based upon who is beneficially entitled to the income. If there was a legal change in beneficial ownership, and your partner became a legal owner or a beneficial owner through a declaration of trust, then you would both be taxed based upon your new shares in the property . Thank you .

Hi HMRC, Thanks for this advice. A quick question. If me and my girlfriend jointly own the rented out property, and we've decided that I will receive 100% of the rental profit, does she need to fill out a self assessment, or just me? Thanks!

Hi Ollie,
Thanks for your question.
If you have both decided to allocate 100% of the rental income to yourself, with your girlfriend receiving 0% of the beneficial interests (rental income and expenses) then for the aspect of rental property, if this is the sole property you rent then only yourself would need to complete the SA105 UK Property page of the Self-Assessment Tax Return.
Thank you.