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Posted Sun, 30 Jul 2023 14:22:43 GMT by
My partner and I are buying a property and trying to get to the bottom of how to proceed. I’ll call us A and B. Let’s say A puts X% in to the purchase and B puts in Y% Scenario 1: B gifts A the money. The property is bought in A’s name only. A is entitled to, and taxed on, the rental income. Query 1: if due course, we decided B should benefit from the rental income, what steps should we take at that point. Would a transfer of the property into both names be required? Scenario 2: A and B buy as tenants in common. Query 2: Is the presumption that the rental income would be split X:Y? Could we choose to vary that at will, and are we permitted to later change any agreed split? What formal requirements apply in that case? Thanks for your assistance!
Posted Thu, 03 Aug 2023 15:09:40 GMT by HMRC Admin 10 Response
Hi
1. you would need to send in a declaration of trust to show the revised split. this must be signed by both parties and witnessed.  
2. as tennants in common, any beneficial interest is based on the actual ownership of the property and any alernative split must be put in writing via the declaration of trust as mentioned in point 1.

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