IN118 - Couple can hold assets separately

Married couples or civil partners do not have to hold assets in joint names. They can hold them separately; and they can divide up joint assets so that they hold them separately for the future. Each spouse or civil partner is then taxed on the income from the assets each holds in his or her own name.

We have no objection to the division of joint assets where this is done genuinely. There may be problems where a division takes place but one spouse or civil partner retains some sort of interest in an asset which is held in the other's name. In such circumstances, the Settlements legislation in Chapter 5 Part 5 ITTOIA may apply and deem the income arising to belong to the original owner of the asset. Submit the papers to HMRC Trusts Head Office Edinburgh where this happens.