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HMRC internal manual

Trusts, Settlements and Estates Manual

From
HM Revenue & Customs
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Ownership and income tax: income tax claims - examples

Examples of income tax claims include:

  1. Property is held in A’s name. A says s/he has transferred beneficial ownership of the property to B, who should be taxed on all the income.
  2. Property is held in A’s name. A says the property is beneficially owned by A and B, and so the tax due on the income should be split between them.
  3. Property is held in A’s name. A says s/he is the legal owner of the property but claims that B provided part of the cost, so B should be taxed on part of the income.
  4. Property is held in A’s name. A says s/he still owns the property but has transferred the right to all of the income to B, so B should be taxed on it.
  5. Property is held in the name of A and B. A claims that the property is beneficially owned by B only, so B should be taxed on the income.
  6. Property is held in the name of A and B. A claims that B provided part of the cost, so B should be taxed on part of the income.
  7. Property is held in the name of A and B. A claims that the income belongs 10% to A and 90% to B, so B should be taxed on 90% of the income.

There may be other variations - examples of various claims and explanations of the correct treatment are given in TSEM9900.