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Posted 12 months ago by Michael Fray
Hi, this is my scenario. I’ve been renting my property for nearly 6 years. I’m the owner of the property and paid income tax on profits @40%. I’ve recently married, my Wife only pays income tax @20%. I believe I can write a declaration of trust to make my Wife the beneficiary of 100% of the income meaning liability for tax would be 20% rather than 40%. She would naturally add the profit to her self assessment. I’ve seen wording to use in these forums. My question is, I’ve read several posts about this but there are contradictions to advice. Can I simply create the trust, date and sign and keep for future reference? Or, do I need to register my trust with HMRC? I think the later as this seems to be a new process? Thanks
Posted 12 months ago by HMRC Admin 17 Response

Hi, 
 
Thank you for your question.

Based on the information you have provided it does appear that you will need to register with HMRC via the Trust Registration Service,
You can find further guidance on this at https://www.gov.uk/guidance/register-a-trust-as-a-trustee.

There is also more information at https://www.gov.uk/hmrc-internal-manuals/trust-registration-service-manual/trsm23050.

Thank you .
Posted 12 months ago by Michael Fray
Hi thanks for the reply. I’ve tried to start the process but really confused. Can you answer a few questions: I’ve created an Organisation Gov. Gateway Account in my name. Is this correct? Or should it be my Wife doing this in her name? Who is the Trustee, is that me the owner? Who is the Settlor? Is that also me? I’m guessing the Beneficiary is my Wife who would then pay the income tax? I tried to register the trust but it asked for details of the trusts UTR and name and address from last self assessment submission. I put my Wife’s details in but received an error saying wasn’t correct. Should I put my details from my self assessment in these screens? Sorry to appear dim…. Just can’t get me head around this Michael
Posted 11 months ago by HMRC Admin 17 Response


Hi,
 
Thank you for your question as it relates to trust registration .

I suggest you call out trusts helpline  on 0300 123 1072 they will be able to assist you further .

Thank you .

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