Declaration of Trust for Rental income to be assessed on Wife

[170872]

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]

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.