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Where Taxpayers and Advisers Meet

Declaration of Trust for Rental income to be assessed on Wife

170872
Posts: 69
Joined: Wed Aug 06, 2008 3:41 pm

Declaration of Trust for Rental income to be assessed on Wife

Postby 170872 » Sun Jul 12, 2020 10:49 pm

Hi all,

I wanted to check if this is true please. Someone said to me that as a higher rate tax payer with 3 rental properties income shared equally between me and my wife 50%/50%, I can now do a Trust deed arrangement so that all my portion of rental income can be assessed on my wife's name who is at lower tax bracket. Is the true and is this acceptable by HMRC.

Would appreciate if someone can share some information on this

Thanks

jerome.lane
Posts: 237
Joined: Mon Aug 12, 2019 8:41 am
Location: Sandhurst, Berkshire
Contact:

Re: Declaration of Trust for Rental income to be assessed on Wife

Postby jerome.lane » Mon Jul 13, 2020 7:38 am

It is possible to structure so your wife receives higher income share although the suggested route would involve making a gift of your equitable interest in the property which could result in SDLT. There are alternative options which you may wish to explore.
Jerome Lane
Tax Adviser
Telephone: 07943 005902


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