Property income BTL

Hi Admin, I own a rental property which is solely in my name in the title deeds and the mortgage of it. I am working full time and I am a higher rate tax payer. My wife, whom is a lower rate tax payer, takes care of the running of the property and deals with any issues with the tenants. I wish for my wife to receive rental income and pay tax on this. Is this possible by keeping the mortgage and property in my name? If so, how do I go about this? Form 17 does not apply to us as the property is solely owned in my name only. Thank you

Hi,
As the property in question is solely owned by yourself, we would advise that a Form 17 would not suit your personal situation, as this would only be necessary if the property was jointly owned.
We would advise that you submit either, a valid Deed of Assignment or trust in order to reflect the reassingment of beneficial interest in the property.
Only the party who incurs the mortgage costs, and pays the interest may claim the mortgage interest as you can see in the following guidance
SAIM10030 - Relief for interest paid: general conditions: the claimant
To make this transfer, the property must be held as tenants in common.
Thank you.

Hi, Thanks for the reply. I will complete a Deed of assignment and I believe I do not need to send HMRC a copy but keep for my records. Once a Deed of assignment is completed are me and my wife now classed as tenants in common? My wife is then liable for the tax from the date of when the Deed of Assignment is completed?

Hi,
You are correct, you would not need to send a copy to HMRC, however,  we would suggest keeping a copy of the document for any future queries.
You may wish to change from Joint tenants to Tenants in common, however, we would advise you to contact a legal advisor as this is a matter of law and may affect terms of mortgage arrangements.
Thankyou.