Clarification on Deed of Assignment for Rental Income

Dear HMRC Team, I am the sole owner of a Buy-to-Let property, which is mortgaged in my name. The property is rented out, and I currently receive the monthly rental income. I would like to assign the rental income to my wife, who is not working, so that she can receive it in her name and declare it in her Self-Assessment tax return. During my research on the HMRC website(https://community.hmrc.gov.uk/customerforums/ifp/678a395c-5b79-ed11-97b0-00155d9c7b3d), I came across information suggesting that this can be done using a Deed of Assignment, without the need to transfer ownership or re-register the land title. Could you please confirm whether executing a Deed of Assignment in favour of my wife would allow her to receive the rental income and report it under her tax return, even though the property and mortgage remain in my name? I appreciate your guidance on this matter. Thanks in advance.

Hi Sridhar,
Yes you would need to have the deed of trust/assignment that has been signed and dated by both parties and witnessed.
This should then be sent to:
HMRC PAYE & Self Assessment BX9 1AS.
Until this is cofirmed by us, the income should stll be declared by you.
Thank you. 

Dear HMRC Team, I happen to have the exact same situation as Sridhar above. I have recently got a 'deed of assignment' completed by a solicitor to assign 100% of the rental income to my wife as a beneficiary only. I remain the sole owner of the property and responsible for the martgage payments. I would like to get your help now to clarify what is the official guidance on how to notify HMRC that a "deed of assignment" is in place so we can start to reflect this in our future self assessments. I am asking because I have seen a number of conflicting advice in a series of other posts in this forum from others asking similar questions as to what needs to be done to notify HMRC. Please can you help clarify. I have summarised below 3 different advise/methods given in different posts by different admin people, hence I wanted to clear this up. Which one is correct or do we need to do a combination of the following based on official guidance? 1) Do we need to register this as a trust using the following link? https://www.gov.uk/guidance/register-a-trust-as-a-trustee 2) Do we need to send a paper copy the 'deed of assignment' into HMRC as suggested in the reply from 'HMRC admin 25' to Sridhar above? 3) Or We do not need to do anything? There is no need to notify HMRC. Just keep a copy of the 'deed of assignment' ready to share with HMRC, if requested in the future. Your help much appreciated.

Hi ,
 

Thanks for your question. As per the information provided, option 2 would be the viable option in order to correctly notify HMRC of the beneficial ownership change in terms of rental income/expenses only by declaring a valid deed/declaration of trust , whilst still maintaining that you are responsible for mortgage payments. Thanks  .