Belal Ahmed

Dear HMRC, I am seeking clarification on the process of transferring rental income from a property I own, as I have encountered some confusion and mixed messages in previous threads and from different HMRC Admin responses. Context I am the sole owner of a leasehold property and declare all the net rental income on my self-assessment tax return. I intend to transfer 100% of the rental income to my wife, who would then declare the income on her self-assessment. I understand this involves transferring the beneficial interest in the property, but not ownership. Having reviewed similar queries, I believe a Deed of Assignment (or Declaration of Trust) may be needed to transfer the beneficial interest. However, I have some specific questions and would appreciate your guidance: 1. Deed of Assignment/Declaration of Trust: As I am the sole owner, I assume I would need a Deed of Assignment or Declaration of Trust to transfer the beneficial interest and rental income to my wife. Which document do you prefer I use? Is there any difference between the two, or can either serve the same purpose? Can I prepare the document myself, or should I consult a solicitor? Also, do I need to submit this document to HMRC, or is it sufficient to keep it for my records? 2. Form 17: Since I am the sole owner and not jointly owning the property with my wife, I understand that Form 17 does not apply. Could you confirm that I do not need to submit Form 17, and that I can allocate the income directly to my wife without this form? 3. Bank Account for Rental Income: Does the rental income need to be paid directly into my wife’s bank account to validate the transfer, or can it remain in my account with the income formally allocated to her for tax purposes? 4. Income and Expenses on Self-Assessment: As my wife will declare the rental income on her self-assessment, can she include all relevant expenses (e.g. maintenance, repairs, expenses, mortgage interest) in her return, even though I will pay these expenses directly? 5. Trust Registration Service (TRS): If we use a Declaration of Trust to transfer the beneficial interest, does this need to be registered with the Trust Registration Service (TRS) for anti-money laundering purposes? If so, could you clarify the registration requirements? For context, my wife and I are civilly married, which I assume does not affect the process. Thank you for your time and assistance. I would greatly appreciate it if you could kindly respond to all five of my questions. This will ensure clear guidance for both myself and others in a similar situation. You can respond by simply stating the question number followed by your answer. Best regards, Belal Ahmed

Hello, Does a Declaration of trust need to be registered on the trust registration services?

Hi, Form 17 only applies to those who jointly own properties with their spouses or civil partners. In my case, I solely own the property in my name so this does not apply to me. I just wanted to double-check. In our situation, will a Declaration of Trust be valid where I wish to allocate the full 100% rental income to my wife? Please note, that my wife and I are civilly married in the UK. Lastly, what specific information and details must be included in the Declaration of Trust and can this document be written by us or does it need to be written by a legal professional such as solicitor? Thank you

Hello, I just wanted to get some clarification regarding the above. I am a sole owner of a rental property and my wife will be receiving 100% of the rental income. I wanted to know what written agreement we need to have in place for HMRC. I want to continue to own the property in my sole name, it is just for my wife to receive the rental income fully and for her to complete her self-assessment each financial year. Also, in the agreement what things will HMRC want to see written? Thank you