Sue Richardson

Registered with Property118.com
Wednesday 10th August 2016


Latest Comments

Total Number of Property118 Comments: 2

Sue Richardson

13:05 PM, 18th August 2016, About 5 years ago

Declaration of Trust twice?

Thank you so much everyone for your comments.

I have actually found an earlier post on this site from someone wanting to put the rental income under their spouses name for tax purposes (who's name is not on the mortgage) here:
https://www.property118.com/putting-property-husbands-name-tax-relief/72149/

This is essentially what I was hoping to do. Mark had responded to say a 'Declaration of Trust' would be possible and no CGT would be payable between spouses. The process sounded quite simple.

Below I have tried to re-clarify my circumstances:
My husbands income is currently just £4000 (my understanding is that he still has £7000 tax free allowance).
The income from the property is approx £4000 per year (With the introduction of the new Buy-to-Let tax this income will gradually increase over the next 4-years as the full 100% interest only portion of the mortgage will no longer be deductible as an expense).
As a 20% tax payer, I would like to complete a new 'Declaration of Trust' gifting him 99% of the property so that this income could be listed on his personal tax return.
My husbands name is not currently on the mortgage.
Mine and my mothers name are listed on the mortgage and via a Tenants in Common agreement and previous Declaration of Trust, I am listed as holding 100% proceeds and my mother 0%.

Having read the article noted above, I think it sounds like the 'Declaration of Trust' option for tax purposes would be feasible and also quite straight forward in this situation too. If you are able to clarify whether you agree, that would be wonderful. Apologies, if I did not make the above clear when posting my original question.

Thank you so much again.... Read More

Sue Richardson

13:37 PM, 10th August 2016, About 5 years ago

Declaration of Trust twice?

Reply to the comment left by "Michael Le Souris" at "09/08/2016 - 14:22":

Thanks so much for your feedback All. So much appreciated.

In answer to the questions raised:

Myself and my mother are listed on the mortgage.
I own 100% of the property via a Tenants in Common agreement.
I would like to gift my husband 100% of the property via a Declaration of Trust (I have previously completed a Declaration of Trust to adjust the portion owned by Myself and my mother since I pay 100% of the mortgage / bills associated)
The mortgage is Interest only and therefore my understanding is that considerably more tax will be owed from April 2017 (although I do understand this will be introduced gradually over a 4-year period)
I will look into form '17', thank you so much for the recommendation. And, I am not yet familiar with the 'Fighting Fund' however will look into this.

Thanks again.... Read More