Tenants on Common - Rental Income

Hello HMRC Income from Property Team I have a property purchased as tenants in common from a "ownership" point of view. The property is owned with a family member (which is not husband/wife relationship). However the rental income is split 25% and 75% respectively, can you provide guidance on how this is reflected in self assessment tax returns. Thanks

Hi Mark Ross,
Thank you for your question.
If the rental income is split 25% and 75% then you would both complete your own individidual tax returns and declare your own individual share of the income and expenses (75% and 25%).
Please refer to the following guidance for further information:
PIM1030 - Introduction: jointly owned property & partnerships
Thank you. 

Thank you for the guideance on how to complete the SA for each person based on how the rental income allocation is agreed to be split between the owners. And sharing the PIM1030 document for additional reference. I have a follow-up question, (as I'm not very clear in reading the document). If the current income allocation split submitted in the previous SA changes, to a different percentage in future, for example if it changes from 25/75 to 50/50, or 0/100 or any other percentage split in future years, which owners decide and agree between themselves based on their circumstances at given period in time. Does the above guideance from HMRC still apply (for property owned as tenants in common) without any need to submit or complete any other type of paper work or forms etc.

Hi,
 

Thank you for your question. As you know, if a property is not held jointly by a husband/wife or civil partners, the share of the income for tax purposes must be the same as the share actually agreed between the owners of the property. You do not need to submit any paperwork or forms if the agreed share of the income changes in future years. Thank you.

Hello HMRC Admin 17, Hoping you can provide some clarification for me, please. I own a rental property with my girlfriend (unmarried), the property ownership is Tenancy in Common with a 50:50 split in shares. For tax purposes on our self assessment tax returns, we would like to split the rental income different to the 50:50 split in property ownership shares. We would like to split the rental income at 90:10. Please can you confirm: - Because we are not married, myself and my partner are able to agree between ourselves the split in rental income, even if that is different to the ownership shares of the property? - Do we need to document this agreement in a trust declaration/deed? Regards, 

Hi,
 

Thank you for your question. You are correct, between your partner and yourself, you may decide on the split, however, I would advise that the expectation applies to both income received and expenses incurred.

Thank you.

Hello HMRC Admin, My wife and I hold the property as tenants in common with 90-10 split of shares. Trasfer Deed to this effect was executed in 2020. We started earning rental income from this property last year (2023). Can you please confirm that for tax purposes, on our self assessment tax returns, can we split the rental income to be same as our 90-10 split of shares? Or do we need to submit any other paperwork or forms (form 17?) before we can split the income this way? Many thanks.

Hi,

You must make a declaration on form 17 and forward this with a copy of the transfer deed.  

You can only treat the income as being assessable on any basis than 50/50 from the date form 17 is signed by both you and your wife.  

You can find form 17 on our website here:

Declare beneficial interests in joint property and income

Thank you.

Thanks. I posted the Form 17 with a copy of Transfer Deed as evidence. Will I receive any acknowledgement or confirmation of this? Or do I simply start splitting the income (on self assessment) from the date we signed the Form 17?

Hi,
Forms 17 are acknowledged when they are processed. Please wait for receipt of this before completing your tax return and reporting the split of income the form 17 relates to. 
Thank you.

Hi, Is there any estimate of when one can expect to receive Forms 17 acknowledgement? It has been 3.5 months since I sent it but haven't heard anything back so far. Thanks.

Hi Sandeep Kumar,
 Please contact us here:
Self Assessment: general enquiries
For an update regarding your form 17 acknowledgement.
Thank you.