Declaration of Trust shared rental income

I am considering making a deed of variation to give a recently inherited property to my adult children. The intention would be to rent out this property. Would my adult children be able to make a declaration of trust so that I can receive the rental income ?

Hi,

In these circumstances, by making a declaration of trust, your children would be transferring the beneficial ownership of the property and any income arising from the property to you. In effect they would be giving the ownership of the property back to you.

Thank you.

My 2 adult children jointly inherited a property from their deceased grandparents. The intention is to rent out this property. One of the adult children has declined to accept any income from this rental of this property & wants their sibling to have 100% of the rental income. How do they approach this when declaring property income & what are the time frames for notifying HMRC?

Hi,
In order for one party to denounce any rental income/ incurred expenses, a valid Declaration of Trust may be created clearly outlining beneficial interests of the rental property. You can see guidance here:
TSEM9520 - Ownership and income tax: express trusts - written declaration
We would advise  you to make such declaration as soon as possible to ensure the correct split may be disclosed within the 2024 to 2025 tax return.
Thank you.