Last updated: 14 October 2026
How do you share income from a let property with your partner?
For married couples and civil partners, rental income from a jointly owned property is split 50:50 for tax by default, whatever your actual shares. If you own the property in unequal shares as tenants in common, you can make a declaration on form 17 to be taxed on your real shares, which can move more income to the lower-earning partner. Unmarried partners are taxed on their actual beneficial shares, or on a different agreed split if they run the letting as a business partnership. You can’t share income on a property you own alone just by paying it to your partner.
How rental income is split
| Ownership | Default tax split | Can it be changed? |
| Married, joint tenants | 50:50 | No, joint tenants own equally |
| Married, tenants in common in unequal shares | 50:50 | Yes, by form 17 to match actual shares |
| Unmarried, joint owners | Actual beneficial shares | By agreement, if a genuine partnership |
| Sole owner | 100% to owner | Only by transferring a share |
Using form 17
- You must first own the property in unequal beneficial shares, usually by a declaration of trust
- Form 17 must be signed by both and sent to HMRC within 60 days of the date of the first signature
- It applies from the date of signature, not backdated
- It stays in place until your shares change or you separate
Example
Daniel, a 40% taxpayer, owns a flat jointly with his wife Ruth, who earns £15,000. The rental profit is £16,000. At 50:50, Daniel pays £3,200 and Ruth £1,600. They sign a declaration of trust giving Ruth a 90% share, and file form 17. Now Daniel pays £640 and Ruth pays £2,880 (Ruth’s extra income stays in the basic rate band), saving the couple £1,280 a year.
Transferring a share to your spouse
Transfers between spouses and civil partners living together are free of CGT. SDLT may apply if the property has a mortgage and your spouse takes on part of the debt, so check before transferring. Lenders need to agree to changes to the title.
Mortgage interest
Finance costs get a 20% tax credit, split in line with the shares used for the income. Moving income to a basic rate partner doesn’t reduce the value of the credit.
Rates from April 2027
Property income will be taxed at 22%, 42% and 47% from 6 April 2027, so shifting rental profit away from a higher rate partner will save even more.
Common mistakes
- Filing form 17 more than 60 days after signing
- Making a declaration without changing beneficial ownership
- Forgetting SDLT on a mortgaged transfer
- Forgetting that form 17 covers income only from the assets listed on it, so each property needs to be included
Frequently asked questions
Can unmarried couples use form 17?
No, it’s only for spouses and civil partners.
Does form 17 affect CGT?
Your beneficial shares decide the gain on sale.
Can I backdate form 17?
No.
What if we separate?
The declaration stops applying once you permanently separate, and each of you is taxed on your actual share.
Related: tax-free property transfer to a spouse, removing a name from property deeds and buying in your own name or a company.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with jointly owned rental property. See our landlord accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
