Income Tax Act 2007 section 837

Jointly held property: declarations of unequal beneficial interests

Section 837 allows married couples or civil partners who hold property jointly to declare that income from that property should be taxed according to their actual beneficial interests rather than being split 50:50.

• Couples can declare unequal shares of income from jointly held property, overriding the default 50:50 split, provided their income shares match their ownership shares in the property
• The declaration must state each individual's beneficial interest in both the income and the underlying property, and must be notified to HMRC in the prescribed form within 60 days of being made
• The declaration takes effect for income arising on or after the date it is made, not retrospectively
• The declaration remains in force until there is a change in either person's beneficial interest in the income or in the underlying property itself