I have inherited a property in Spain. I am tax resident in the UK. According to the tax system in Spain, the rental income can be shared or split with my spouse (like a matrimonial income), which would reduce my income tax liability. The property remains non-matrimonial. I wonder whether it would have the same tax treatment in the UK so I can split the rental income 50:50 with my spouse for tax purposes? 

Arthur Weller replies:  

In order for the rental income to be received 50:50 for UK tax purposes, you would need to do one of the following two things: (a) put the property into joint legal names; or (b) keep the property in your sole legal name, but through a declaration of trust transfer 50% of the beneficial ownership of the property to your husband (see HMRC’s Trusts, Settlements and Estates Manual at TSEM9520). If you take the first option, you could have a declaration of trust behind the joint legal ownership that enables you to have any percentage of beneficial ownership that you wish. As long as the property is in joint legal ownership, the rental income is received 50:50.