Advice required on Declaration of Trust

bazman999

Hi Forum Members, me and my wife rent out a house we purchased and any money we make from this in rent is taxed at 40%, minus any maintenance expenses.

My wife has recently retired and heard that we could get a Declaration of Trust drawn up by a solicitor that could be used for tax purposes so that all of the house rent we collect could go against her income only. So would hopefully end up paying no tax at all on this property.:rotfl:

Do any of you know if this is possible and how easy is it to do via a solicitor and then the taxman.

FYI, I am in full time employment and are PAYE. Also, I do my tax returns on-line.

Thanks in advance.

xylophone

https://www.whitefieldtax.co.uk/declaring-rental-income-on-jointly-owned-properties/

may help?

Sibbers123

You want to get paid for professional advice and a solicitor to write up the declaration of trust.

What the DoT will mean is that you are saying your wife is the beneficial owner of the property meaning if the property was sold, she would be entitled to all the sales proceeds. When you say a DoT for 'tax purposes', the DoT will be for all purposes - it is important not to have your tax blinkers on.

If there is a mortgage, you will also have to consider stamp duty land tax.