In the process of making a disclosure under the let property campaign for a client. Land registry title deeds show property is owned by her and her son (this was at one point their family home), property has been let for last 4 years and all rental income paid to the mother. Before the property was let a declaration of trust was drawn up by a solicitor stating the son has no benefit or liability from the property. she wants to disclose all rental income as she has received the benefit, no rental income was paid to the son.
What is confusing me is on the disclosure form there is a question that asks is this property owned jointly, if you select yes it asks the percentage of rental income that you received from this property. I have spoken with someone at HMRC let property helpline who has advised that the income needs to be split 50/50 regardless of beneficial ownership. I have tried to explain the above to the women on the phone however she is adamant that it needs to be split 50/50 even if the mother received all the rental income and had an agreement in place, otherwise the disclosure will be rejected as it is 'incomplete'.
Any advice would be much appreciated?