Sharing rental income with spouse

Hi I am a sole owner of a rental property and I wish to transfer a share of the rental income to my spouse. I have requested a solicitor draft a deed of assignment to transfer 90% of the beneficial interest to my partner leaving me with 10%. As I understand it from the date the deed is signed, my spouse and I can declare our individual share of the rental income on our self assessments. Rental expenses incurred can also be shared in the same 10%/90% proportion. Mortgage costs cannot be shared as the mortgage is solely in my name. I don't think I need to register or send the deed to HMRC, just keep a copy should HMRC ask to see it at any point in the future. Could you confirm my understanding is correct please and whether I have missed any steps before I action the deed. Thanks.

Hi,
Yes that is correct based on the date the deed of assignment is signed.
HMRC would expect to see both the rental income and any expenses incurred reflected based on the percentage split shown in the deed.
We can confirm that although you do not need to send a copy of the deed of assignment,  we would advise to keep hold of a copy as HMRC may request sight of this in the future.
Thankyou.

hello HMRC Admin 8 I am in a similar position as the above forum member, except I would like to assign 50% of the beneficial interest (rental income) to my husband and we have not instructed anyone yet. Could you please advise me on the following: - is there any stamp duty to be paid on such an assignation? and - is there any tax to be paid when gifting beneficial interest? I am the sole owner of the property (no mortgage) and the property is registered with the Land Registry in my name. Thank you in advance

Hi ,
 

Thank you for your question, unfortunately this is a forum for Income from Property, please redirect your questions to the Capital Gains forum see : Capital Gains Tax Questions on tax when you sell property, shares, personal possessions and business assets . You can also contact Stamp Duty regarding that part of your question at at : Stamp Duty Land Tax   . Thank you .

Thank you HMRC Admin 17, for your guidance and links have a great week .

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