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Posted 2 days ago by nofuse1971
I currently solely own a property that I rent out but no longer want to continue to be a landlord. However I wish to retain the property and let my partner rent it out and receive 100% of the income. I understand this could be achieved by creating a deed of assignment. However as I own the property and would receive the proceeds when it is finally sold, would this action not fall fail of the settlement legislation?
Posted about 11 hours ago by HMRC Admin 25 Response
Hi nofuse1971,
 As per TSEM4015 and TSEM4200 attached here:
TSEM4015 - Settlements legislation: effects of the settlements legislation5,
And
TSEM4015 - Settlements legislation: effects of the settlements legislation
As there may be a view that a tax advantage is being gained by the transference in which diverts income to another person who is liable at a lower rate of tax or not liable to income tax, settlements legislation would apply as you would retain an interest in said property up until sale in future, in turn such income would be treated as yours for all tax purposes.
Thank you. 

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