Deed of Trust - Transferring Income to Spouse

Hello, I have a similar but slightly different situation to the one mentioned by Editrix above. I am sole owner of 2 BTL properties, each of which have a BTL mortgage. I am told that I can transfer the entitlement to 100% of the rental income for both properties to my spouse via a Declaration of Trust, and that thereafter, I would not include this income on my tax return and my spouse would include 100% of this income less the allowable related expenses. Can you confirm that this is permissible. Thanks,

Hi, Is it possible to set up a deed of trust that enables a family of siblings to jointly own a property?

Hi ,
 

If your actual beneficial interest in the property is formally changed through a declaration of trust so that you have 0% beneficial interest and your spouse has 100% beneficial interest, then you can ask to be taxed on that basis by sending a Form 17 declaration to HMRC with a copy of the declaration of trust as evidence.  The 0% / 100% split would only take effect from the date that the valid Form 17 declaration is signed by you and your spouse. A declaration of trust is a legally binding document that creates a trust. Most types of trusts giving an interest in property to somebody who is not the legal owner now need to be registered with HMRC via the Trust Registration Service. You can find guidance on the registration requirements and how to register here See: Register a trust as a trustee  . There’s also more information about what type of trusts need to be registered at see: Registration Service Manual     . Thank you .

Hi ,
 

Thank you for your question. Yes, it is possible to complete a Deed of Trust for siblings to jointly own a property. However, depending on the complexity of the terms of the Deed, legal advice may be advised. Thanks