Ste X

Hi HMRC, My wife and I have a similar situation however I am in the UK Military and posted to Texas for 3 years so may have additional considerations. Details and RFIs below. Background We will be assigned to Texas for 3 years under a NATO 2 Visa and I will still pay tax within the UK on my military salary. I own a property that I will be renting out for the duration of the tour with permission from the mortgage company to remain on a residential mortgage for the duration given Armed Forces Covenant, The property is solely in my name. My wife is still classed as a first time buyer and has no involvement in the property. My Wife will not be working while we are in Texas and to provide her an income I intend on assign 100% of the rental income from the property to her. My current understanding: From research online I understand that I can make my wife a beneficial owner through benefit of trust of our house and this would entitle her to receive income from the rent. We would then complete TSEM9520 - Ownership and income tax: express trusts - written declaration - HMRC internal manual - GOV.UK (www.gov.uk) to ensure “A declaration of trust is usually a statement by the legal owner of property that s/he holds the beneficial interest for someone else. S/he is not transferring the legal title.” I s this all that is required to permit my wife to receive 100% income from the rental agreement? There is also Form 17 that I think we are required to submit to ensure rental income can be 100% to my wife and 0% to me Thus allowing the first £12.5k to be 0% tax and the remainder at 20% tax? Additionally, it’s my understanding that we would need to submit a NRL-1 for my wife to ensure the rental management company will transfer 100% of rental income (minus fees) to her UK account and that she will then have to declare the rental income on an annual self assessment. This would mean that my wife loses First Time Buyer status given HMRC definition of interest in property? Please can you also provide a template for deed of trust? Who needs to be informed of the deed of trust and in what format? We have tenants moving in on Aug 8; what of the Deed of Trust, Form 17, NRL-1 need to be completed by then? What of the Deed of Trust, Form 17, NRL-1 need to be completed by the end of the tax year? What other tax implications are there against my mortgage on the property (this includes Government HTB) Are there any additional tax relief schemes we should be aware of given we're married, living overseas, serving in the UK Military? What impact does this have, if any on capital gains tax upon return to the UK? I appreciate there is alot here, Ideally I would talk this through with one of your tax specialists but happy to communicate on this forum for others awareness. Is there a number to speak to a HMRC representative? I'm nervous about this as there is contradictory statements on the forum and the consequences for making errors here could be significant. Look forward to your response. Kind regards, Steven