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Rental Income Share between two people who live together

My clients live together but are not married or in a civil partnership. They jointly own and rent out a house.0ne is a basic rate and the other a higher rate taxpayer so they have agreed that all rental income should be allocated to basic rate taxpayer.

Do they need to notify hmrc or make any election as in case of married couples.

Many thanks for any response


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31st Dec 2012 15:13

See this comment...

.....straight from a book I have recently finished writing.

If a property is owned jointly by two persons who are not married or in a civil partnership, the rental profit is not automatically split 50: 50.

Rather the income split is in whatever proportion they agree between themselves.

The HMRC form 17 ‘Declaration of beneficial interest in joint property and income’ is not relevant in this instance but a written agreement would be helpful.

'101 Property Tax Secrets Revealed'.

Thanks (1)
By Tosie
31st Dec 2012 16:11

many thanks

Thank you very much I subscribe to tax insider and I will be buying the book. Most grateful

Thanks (0)
31st Dec 2012 17:15

HMRC confirm this

HMRC's manual confirms (in this situation at least) that their % beneficial interest in the proeprty need not reflect their % rental income share: 

They couldn't do the same with interest from a joint bank account (unless perhaps one did a declaration of trust re their share for the other) per: 






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