Rental from second home when separated.

Currently separated. First home sold. Own second (rented out) home in equal shares with ex-partner but receive no revenue. Partner is delaying taking my name of title deeds (previously agreed) and will not sign Form 17. How can I protect myself from any income tax liability? Thankyou

Hi,

The following guidance states that a married couple or civil partners who have separated would not be subject to the 50/50 rule, as it applies only to couples living together (TSEM9810). They will be taxed on their actual entitlement in any event, and so cannot make a form 17 declaration.

TSEM9844 - Property held jointly by married couples or civil partners: Form 17 rule: Who can make a declaration?

You can also see guidance on ownership and Income Tax here:
 
TSEM9330 - Ownership and income tax: introduction: income tax principles - joint ownership

Please also see the following guidance which states that if you own a property jointly with another person who is not your spouse or civil partner your share of the rental profits or losses will usually be based on the share of the property you own, unless you agree a different allocation.

Work out your rental income when you let property

Thank you.

Hi, just for clarification you state that married couples or civil partners who have separated would not be subject to the 50/50 rule. However the later guidance states that "If you own a property jointly with another person who is not your spouse or civil partner your share of the rental profits or losses will usually be based on the share of the property you own, unless you agree a different allocation." So if a property was purchased in joint names prior to separation by a married couple and they then separate the 50/50 rule does not apply but they are jointly liable for income tax based on equal shares which is in fact 50/50 even though one partner gains no revenue from the property? How does the ex partner who gains no revenue (if indeed there is rental income) shield themselves from tax liability if the other partner will not take his name from the title deeds? Thankyou Thanks

Hi,

Where a property is jointly owned by anyone other than a married couple, then you can split and share the income on whatever basis you choose and be assessed on that share of the income.  

If you do not receive any of the income you do not need to declare anything.

Thank you.