Letting-out existing home: use Declaration of Trust?

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    Letting-out existing home: use Declaration of Trust?

    Hi

    Myself and husband are in the very early stages of thinking about renting our flat out in order to buy a house, due to huge property price losses.

    1) I'm asuming that as the flat is in both of our names - we would both have to pay tax on the rent?!

    2) If this is the case - we bought the flat before we were married and I put more of a deposit down than him and we had a declaration of trust drawn up and I owned a higher % than him. Could we use this so that I would pay more of the tax against the rental income? He will be on 40% tax next year, so it would be better for me to pay more of the tax.

    Thanks

    #2
    How is the property owned. Was there a mortgage, are the deeds joint or tenants in common. Who drew up the Declaration of Trust. Regards Peter

    Comment


      #3
      Originally posted by TaxationPete View Post
      How is the property owned. Was there a mortgage, are the deeds joint or tenants in common. Who drew up the Declaration of Trust. Regards Peter
      As there is already joint ownership, the owners are joint tenants of the legal estate.
      If there is already a Declaration of Trust, however, they've almost certainly made it a case of beneficial tenants in common.
      JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
      1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
      2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
      3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
      4. *- Contact info: click on my name (blue-highlight link).

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