Rental income proportion

Washed_up_muso

Hello all, 

My wife and I own a property (UK) where we are tenants in common, and the income (and expenses) are proportioned 50:50. We would like to stack the income/expenses to me only (more tax efficient at moment). Do we have to make a change on proportional ownership in order to do that? Hope that makes sense and someone can offer some advice, thanks.

anselld

Yes, you have to change ownership proportions with a Deed of Trust, then submit Form 17 to HMRC to be taxed by those proportions, eg 99:1.

Cannot be done retrospectively.

Washed_up_muso

Thanks so much for that advice, greatly appreciated. 

Bookworm105

bear in mind that in order to do a DoT and Form 17 the legal ownership of the property must be as Tenants in Common

so if you currently own as Joint Tenants you will also have to first off sever the Joint Tenancy and re-register it as Tenants in Common. You cannot use a DoT unless the underlying legal ownership is as TiC since the start point is that each person owns a defined share of the property (for JT you each own 100% so cannot divide that as there is no share split to start with)