HMRC rule on property income when property is in joint names is and I quote "
If you live together with your spouse or civil partner, we normally treat income from property held in your joint names as if it belonged to you in equal shares and tax each of you on half of the income, regardless of actual ownership."
If you wish this to be taxed on a different basis (known as actual basis) i.e. 60:40; 80:20 etc .etc. then you need to complete a Form17 and also provide evidence in a form of a declaration or deed that your beneficial interests in the property are unequal.
More information on this and a link to download Form 17 is here
I am also providing a link to some guidance notes from ACCA here
I hope this is helpful and answers your question.
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Thank you for your answer. I have a few queries please. The two properties are not currently in joint names and we are not married or in a civil partnership.
Can I still gift one or more houses to her completely (I.E. not a share but ownership)?
As we are not married and if I either have completely or have a share how would the CGT be calculated since there would be no sale and therefore no benchmark price to tax as gain?
Do we need to remortgage in joint names before we can share or gift?
Thank you. To progress this and make any changes do I need to go to a tax advisor in person to get things done or can I do it myself? I.e. gifting a property or setting up a share? It sounds complex and subject to error if I try myself. What sort of fee should I expect to pay to get these things done? Then I'm done I think.