I have a client who has owns one rental property in his own name and whom I complete a tax return each year.
His wife ownes two rental properties in her name (with mortgages) and has her own accountant. My client has said a Declaration of Trust has been completed and rental profit to be shared equally.
The wife's accountant is saying the rental profit should be split equally but I believe this is incorrect and the whole mortgage interest should under the wife and not allocated to the husband at all ?
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Tried to post a link to all the previous similar questions on here but got the "Your comment has been queued for review by site administrators and will be published after approval." message.
Have a look at what's been posted previously, including this:
https://www.accountingweb.co.uk/any-answers/mortgage-interest-relief-7
Thank you this indicates that the loan can be transferred in proportion of the husband and wife's' beneficial interest.
You cannot square the SDLT and IT (re interest) circle is the short answer i.e. you cannot have your cake & eat it re both avoiding SDLT under the DoT (assuming it otherwise arises) and reducing IT.
