Client are husband and wife who have purchased a new property and retained their previous property which they intend to rent. husband is a higher rate tax payer while wife is basic rate. There is a mortgage on the property and so they have been advised by the accountant to create a declaration of trust transferring the majority of the equity to the wife. Speaking with our property department they inform me that it is usual to do a 99%/1% split but not sure why. Is there any reason that the equity cannot be passed wholly to the wife and be held on trust by them both fully for her?
Paul Mounce
Gosschalks