Hi, I'm just wondering if anyone could confirm my thoughts on this scenario. Husband and wife jointly own property but separated early 2013. They have several buy to let properties in joint names but agreed that all the property would be transferred to the husband. Accordingly with effect from April 2013 the husband has received all the rental income, however the properties remain in joint names and have not been transferred into the husband's name yet as they are subject to court orders. Would I be correct to include all the rental income on the husbands SA return or should the wife disclose 50% as technically legally I guess she still owns the properties but has not received the rent ?
Thanks for any thoughts.
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The husband
The obligation to apportion the rental income equally between a husband and wife ceases as soon as they permanently separate.
From the date of separation the income should be included on the return of the spouse (in your case the husband) who is entitled to the income.
Beneficial v legal ownership
Just because the property is still 'in joint names' does not necessarily mean that wife is still the beneficial owner of a half share - she might be holding her half share in the legal ownership as trustee for the husband. It will very much depend on the intentions of the parties.