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Posted Fri, 20 Mar 2020 15:13:40 GMT by jiptaylor Taylor
I am married but my let property is in my name only. I pay higher rate tax before income from property is received. My wife is retired, can I transfer all income to her.
Posted Mon, 23 Mar 2020 10:08:00 GMT by HMRC Admin 2
Hi,

You cannot transfer the income to her to be taxable under her name.  

As the property is owned solely by you it is your income to be taxed. 

Thank you.
 
Posted Fri, 01 May 2020 11:34:44 GMT by crmh2020
A transfer of income only is ineffective for income tax purposes. You could execute a declaration of trust (retaining legal title in your name) but transferring a % of your beneficial interest eg you could own say 10% and wife 90%. Income would then effectively be transferred.
Posted Tue, 12 May 2020 18:51:29 GMT by jiptaylor Taylor
crmh2020. Thank you that is very help. A friend did that but they were joint owners would I need solicitor to draw that up?
Posted Wed, 13 May 2020 17:02:50 GMT by crmh2020
No. All you need to do is execute a declaration of trust (check google). No need to notify Land Registry or HMRC (ie no Form 17 necessary) as legal title remains in your name only.
Posted Thu, 14 May 2020 15:47:12 GMT by jiptaylor Taylor
Thank you for your advice. Very helpful indeed.
Posted Mon, 08 Jun 2020 11:39:12 GMT by VKhmrc
I have a property rented out jointly with i, my wife and my son. The Income is split in ratio of 2%, 65% and 33%. There is a Deed of Trust executed two years ago at time of purchase of property. Can we change the proportion of split to 5%,65% and 30% by changing the deed.?
Posted Mon, 08 Jun 2020 14:06:00 GMT by HMRC Admin 3
Hi, 
Thanks for your question.
You will need to seek legal advice regarding making changes to an existing Deed of Trust.
Any revised Deed of Trust should be sent to HMRC supporting that the parties own the property in unequal shares. Also, that the parties are entitled to the income arising in those unequal shares and want to be taxed on that basis.  
Posted Mon, 14 Sep 2020 14:58:20 GMT by viha
Hi, Can we declare deed of trust on Saving account(s) ? Thanks,
Posted Wed, 16 Sep 2020 08:53:43 GMT by HMRC Admin 8
Hello,

This is something you would need to discuss with the bank who holds the savings account.

Regards,

Posted Wed, 16 Sep 2020 19:13:19 GMT by viha
Hi, Thank you for your reply. Bank is unable to add my wife as a joint owner because its fixed deposit bond. Thanks,
Posted Fri, 18 Sep 2020 12:04:58 GMT by viha
HI, Do the declaration of trust document needs to be signed by the solicitor ? or I can have any witness ? Thanks,
Posted Wed, 27 Jan 2021 16:33:43 GMT by alexsurab98
Thank you for your advice. Very helpful indeed.
Posted Wed, 27 Jan 2021 16:34:51 GMT by alexsurab98
A transfer of income only is ineffective for income tax purposes. You could execute a declaration of trust (retaining legal title in your name) but transferring a % of your beneficial interest eg you could own say 10% and wife 90%. Income would then effectively be transferred.
Posted Wed, 27 Jan 2021 20:43:16 GMT by viha
Hi Alex, Thank you for your advice, Could you please tell us if there is a sole ownership of the property with mortgage, would above advice still effective ? ie if husband owns a property with mortgage with sole name, could he execute the declaration of trust on wife's name to transfer every income on wife's name ? Thanks, Viha.
Posted Sun, 31 Jan 2021 15:03:20 GMT by HMRC Admin 8
Hello viha
Unfortunately I cannot trace the earlier advice you were given.
If you live together with your spouse we normally treat income from property as if it belonged to you in equal shares regardless of actual ownership. If you wish to be taxed on your actual shares you will need to complete a form 17 and provide evidence that your beneficial interests in the property are unequal.
Please see link below for further information:
Declare beneficial interests in joint property and income 
Regards,
Posted Mon, 01 Feb 2021 14:33:32 GMT by viha
Thank you for your reply HMRC Admin 8. The Form 17 states in the first paragraph that this Form can only be used if the Property is held in "Joint names". And one of the evidence that the form is asking is the Land registry Title document which should have both the names(Husband and Wife) as a tenants in common. Could you please confirm your advice as you said "If you live together with your spouse we normally treat income from property as if it belonged to you in equal shares regardless of actual ownership" So, Are you still saying that if the spouse is living together, the property income from the sole ownership of husband can be divided in equal shares between husband and wife? Thanks, Viha.
Posted Tue, 02 Feb 2021 14:48:37 GMT by HMRC Admin 10
Hi

Thanks for your question.

The 50/50 rule only applies if the property is actually held in joint names.

If the poperty is in the sole name of one partner or spouse, then the 50/50 rule does not apply.

The sole owner should therefore declare any income arising from the property.

Regards.
Posted Sun, 07 Feb 2021 23:47:50 GMT by Milind Keer
@HMRC Admin 10 - Apologies I am slightly confused. In this thread, someone advised above that if you are a sole owner of the property you can still transfer the rental income to your wife by doing declaration of trust (retaining legal title in your name) but transferring a % of your beneficial interest eg you could own say 10% and wife 90%. Income would then effectively be transferred. And we don't have to submit Form17 which is essentially for joint ownership. Is that correct? can we actually transfer the rental income from the sole ownership to wife by doing declaration of trust? if yes! do we need to send a copy to HMRC? Please advise.
Posted Tue, 09 Feb 2021 15:10:54 GMT by HMRC Admin 10
Hi

Thanks for your further question.

The Form 17 is for income tax purposes.

We cannot advise you about the actual transfer in this forum or about drawing up a declaration of trust.

Where the joint owners are husband and wife or civil partners, rental profits and losses are treated as arising to them in equal shares, known as the 50/50 rule.

If both entitlement to the income and the property are in unequal shares, a form 17 election can be made to allow profits or losses to be split according to their actual share of ownership in the property.

But these rules do not apply if the property is held in the name of only one spouse or civil partner.

Please see further guidance links :

Trusts, Settlements and Estates Manual

Types of property ownership

Thankyou.

Regards.

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