Assigning Rental Income

Hi, My query is as follows. 2 people inherit a property (not married) and wish to rent it out. They want the rents to go to themselves as legal owners but also be split equally to some other people. So for example 4 people meaning rents get split 25%. They will then sell the property and split the proceeds equally between the same people. Can they choose to do this arrangement of splitting rental income despite 2 of the people involved not being legal owners? If they can, does it have to be a signed agreement from the outset?

Hi Filbert79,
You can go to a solicitor to divide up the legal ownership of the property in four ways and ask for advice about selling it.  
You could then split the gross rental income in four ways.  
You could keep the split at 50-50, pay the tax due on your 50% share & then divide the net income up how you like.  
Don’t forget if you sell this property & you are not due any private residence relief there could be capital gains tax owing on
your share, that is if it has gone up in value since you inherited it. 
Thank you.