Making wife the beneficiary owner of the property

xeel

This question has been asked a few times on the forum but it doesn't match my exact circumstances hence again:

I am the sole legal owner of the property. The property is mortgaged in my name along with a 20% help to buy equity. Due to unavoidable circumstances, I have to move out of the country with my wife for a couple of years and have convinced Help to Buy (HCA) to allow me to rent the property while I am away.


I am a high rate tax payer (40%), and my wife doesn't work so she has all her allowance available (and not a great credit history which is why she isn't a join owner). I was hoping to make my wife 100% beneficiary of the rental income.

- Is that possible while I stay the legal owner?
- If yes, do I need to get a deed of trust prepared by the solicitor?
- Does that need to be filed at the Land registry?
- What does HMRC needs to know? Form17?
- Do my mortgage provider + Help to Buy provider need to be
concerned/informed? and will it affect the remortgaging process in any way?

Any help will be much appreciated

xeel

Anyone in a position to help with this or point me in the right direction. I am not even sure if it is the conveyancer advise I need or an accountants'

antrobus

HMRC guidance is here;
https://www.deedoftrust.co.uk/hmrc-guidance/

sheramber

Your wife needs to be a joint owner. You can be tenants in common with a larger share allocated to her so she gets the income in the sane percentage- 90/10, 95/5 etc

You need a deed of trust and a completed form 17 to send to HMRC.

Your lender will have to agree to your wife being out on the deeds.

Slithery

xeel wrote: »

Do my mortgage provider + Help to Buy provider need to be concerned/informed?

Not just informed but you'll need their permission.

Even if they do let you it will probably involve you paying their solicitors costs.

00ec25

xeel wrote: »

1 Is that possible while I stay the legal owner?
2 If yes, do I need to get a deed of trust prepared by the solicitor?
3 Does that need to be filed at the Land registry?
4 What does HMRC needs to know? Form17?
-

1. impossible if you want to remain sole owner


2 she MUST be a co owner in order for there to be a valid declaration otherwise it will fail as such a split of income when she is not an owner falls within settlements legislation which is designed to prevent spouses artifically diverting invome from a higher to a lower rate taxpayer when there is no underlying enmtitlement top that income


3 she MUST be made a coowner, so when you do that you would of coruse have to inform the Land registry so her name is added


4 Form 17 can only be used if she is a co-owner. Once she is an owner then yes you must use a Form 18 if you want to split the income between you