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Declaration of Trust and Mortgage Interest

Who does the mortgage interest belong to ?

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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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By David Ex
17th Jan 2022 21:36

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

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Replying to David Ex:
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By sanjay100
18th Jan 2022 09:59

Thank you this indicates that the loan can be transferred in proportion of the husband and wife's' beneficial interest.

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By Justin Bryant
18th Jan 2022 09:35

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.

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