Transferring Buy-to-let income to spouse

gregory77

Hello from scotland! :beer:

This thread is often answered when the married couple owns the property jointly. This is not the case here.

In our case, I, the husband owns the property (mortgage paid for). I am a basic rate of 20% taxpayer.
My wife got no income.

How do I transfer the property income to my wife?
Note:
- I own the property
- the tenant pay the rent into my account

Help welcomed!!
:):)

Linton

Only by transferring ownership of the property.

pjclar02

Hello there

You can potentially transfer the beneficial ownership of the property through a simple declaration of Trust. Your wife will then become the beneficial owner of the income and capital

gregory77

Do you know how to fill one? Where?

sheramber

see https://www.deedoftrust.co.uk/hmrc-guidance/

There is another thread running with a similar query

00ec25

pjclar02 wrote: »

Hello there

You can potentially transfer the beneficial ownership of the property through a simple declaration of Trust. Your wife will then become the beneficial owner of the income and capital

have you overlooked the fact he is the sole owner and they are married?

settlements legislation expressly prevents a declaration of trust being effective in such a case, because the transfer is done only to reduce tax without there being any underlying change in the entitlement - the correct answer is as post#2 - convert to joint ownership

this is explained in the link already provided above in the examples section:
- Sole name – taxpayer claims constructive trust
- Sole name – Settlements legislation

Linton

If the property is jointly owned wouldnt HMRC expect the income to be split 50/50?

00ec25

Linton wrote: »

If the property is jointly owned wouldnt HMRC expect the income to be split 50/50?

yes, if owned by a married couple - unless owned as TIC, with a declaration of trust and a Form 17 registered with HMRC, in which case, no

if not married, no