Can we split the rental profit this way?

My wife, son and I have just purchased a property in Scotland in our joint names - one-third each. My wife and I only wish to cover our interest on the loan that we have taken out to purchase the property, with our son receiving the balance of the rental profit. Is it possible to do this?

Assuming your son is over 18, yes it is possible to do so. Draw up a written income agreement saying that even though the ownership of the property is one third each, nevertheless the income is entitled to be received in a different proportion. Then make sure that the right amount of income actually goes to a single name bank account for that individual. The taxation will follow the entitlement to the rental income, as per the agreement.