Declaration of Trust and Allowable Expenses

Declaration of Trust and Allowable Expenses

16:39 PM, 15th January 2020, About 2 years ago 5

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Hello, I am the legal owner of a buy-to-let property with a mortgage. We have just welcomed a child and my wife is no longer employed and I would therefore like to submit a declaration of trust such that she will have to submit a tax return and pay tax on the profits from the Buy to Let.

My questions are:

1) As the mortgage is in my name only, my assumption is that the mortgage interest relief cannot be claimed by my wife – is that correct?

2) Are the other allowable expenses (agent fees, service charge etc.) allowable on her tax return – my assumption is yes, but would like to check.

Thanks in advance



by Mark Alexander

17:42 PM, 15th January 2020, About 2 years ago

Hi Marc

Please book a consultation with us before you do this. There are many holes you could fall into if you don’t get this absolutely right, Stamp Duty being one of them.

If the setup of the Declaration of Trust is right, then your wife will be able to put her share of expenses (including mortgage interest) onto her tax return, pro-rata to the percentage of beneficial interest she owns.

To book a tax planning consultation please see the link below.

by roger

7:57 AM, 16th January 2020, About 2 years ago

I went through the Tax planning consultation with Mark Alexander in July 2019. I am still waiting to set up a declaration of trust to allow my wife to receive a share of the beneficial interest of a Buy to Let, this seems to be a very, very slow process. My latest email 6th Jan is still without acknowledgement. I know both Mark Alexander and Mark Smith are very busy so I just wanted to warn you that it may be a long process. Good luck with your plans.

by Mark Alexander

8:06 AM, 16th January 2020, About 2 years ago

Reply to the comment left by roger at 16/01/2020 - 07:57
Dear Roger

From what you have said above, your case appears to have taken an extraordinary amount of time to deal with. Please rest assured that we will look into why this has been the case and that we will make contact with you directly by email or telephone today. Simple matters such the drafting of a Declaration of Trust should take no more than a few weeks to deal with. If we have 'drooped the ball' somewhere along the line, rest assured we will compensate you for that.

by Mark Alexander

8:39 AM, 16th January 2020, About 2 years ago

Reply to the comment left by Mark Alexander at 16/01/2020 - 08:06
Dear Roger

We have now looked into this matter and found your email dated 6th January this year, which you sent in response to Mark Smith's last email to you on October 2019. From previous correspondence it is clear that you are fully aware of the complexity of your case from the questions you asked in relation to Business Property Relief, non-resident CGT and the responses thereto.

I sincerely apologise for taking 10 days to respond to your last email, it had been overlooked and I am grateful for your reminder, but a simple call or email would have sufficed. Your case has been a very complex one for reasons I shall not go into on a public forum, save to say that is was not simply a case of drafting a Declaration of Trust to share beneficial ownership.

Now that you have provided most of the required information, Mark Smith is almost ready to send you a Client Care Letter and his Terms of Business in regards to legal work you require, subject to having one further video conference with you to finalise a few points of detail. You will not be charged for that and my PA will endeavor to contact you today to arrange it.

Please also see the email I have sent to you.

by roger

8:44 AM, 16th January 2020, About 2 years ago

Thank you for looking into the matter, don't worry I often have email issues as well. Keep up the good work.

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