Deed of Assignment of Rental Income & Tax deductible expense

Hello, I am the sole owner of the property and this property has been rented out. I hope my wife to receive 100% of the rental income hence, I believe the Deed of Assignment should able to help here ? My further question is about the expense of running this let property. Can my wife claim the tax relief of running this let property (as she is being assigned to receive all the rental income and she paid all the running cost, even though she is not the landlord as official) ? Thank you.

Hi,
 

Thank you for your question. If you retain the ownership of the property and just intend to assign any income arising from this to your wife you would remain liable on that income and it would be up to you to claim any expenses. For your wife to become liable to the tax on this income you would have to transfer the actual beneficial ownership of the property itself to her. Thank you .

Hello Thank you for that and I am still a bit confuse. For actual beneficial ownership that you mentioned, can I use the deed of assignment to do this ? Thank you

Hi,

You can see guidance here:

TSEM9160 - Ownership and income tax: legal background: ownership - income follows property

TSEM9170 - Ownership and income tax: legal background: ownership income follows property - variation

You can retain ownership of the property whilst transferring the beneficial interest to your wife. She will become entitled to her share of the rental income and will need to declare this to us. Guidance on how to make a declaration can be found here:

TSEM9520 - Ownership and income tax: express trusts - written declaration

Thank you.