Please excuse my ignorance on this problem, I have searched other threads but still don't really understand.
My girlfriend has been living in a council property for about 12 years and I moved in with her around 3 years ago. 18months ago she wanted to buy the property from the council but couldn't afford it on her own so I bought it with her jointly. In my eyes it is her house and I don't want any claim on it.
We now want to buy somewhere together and rent out the house we are currently in (this will then provide her a bit of a pension in the future). As I understand it any rental income will be taxed 50/50 but as I pay 40% tax and she is in the lower tax band it would make sense to transfer any tax liability to her. We can't transfer the house into her sole name for another 3 1/2 years as the council would be entitled to some of the discount that they gave us back. I suspect that when we bought the property we should have done so as Tenants in common, and not as Joint Tenants, which is what we did.
I have read about 'Form 17' and a 'Deed of Trust' but as we are not married I don't think that these apply to our situation, but I could be wrong!
So, my question is, is there anyway that we can transfer any tax liability in her favour? Can a 'Deed of Trust or 'Form 17' be used?
Thanks in advance
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