Income from jointly held property

Income from jointly held property

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Husband and wife own a property in joint names but have previously made a Form 17 declaration to reflect beneficial ownership. If they wish to revert back to the default 50/50 position do they need to notify HMRC that they no longer wish to adopt the beneficial split or can they just allocate half each on their SA returns ?

Many thanks

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By Euan MacLennan
29th Jan 2014 14:05

Beneficial interest

If the beneficial interest in the property has genuinely changed, the election for an unequal split on Form 17 no longer applies, as set out in s.837(5) ITA 2007.

Has there been a change in the beneficial interests of H & W or is it just a case that they now think they would save tax on a 50:50 split?  What you need is not another Form 17, but evidence of a change of beneficial interest either with a Deed of Trust or an amended entry on the Land Registry.

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Replying to ireallyshouldknowthisbut:
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By millertime
29th Jan 2014 18:47

Hi Euan

 

 Thanks for the reply, there is no change in the beneficial interest, it would just be more tax efficient to revert back to 50/50  - can this be done without changing the beneficial interest ?

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By TaxationPete
29th Jan 2014 21:25

No,

How did you change the beneficial Interest the first time. You can not just submit a Form 17 at will. Regards Peter

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Replying to Mr J Andrews:
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By millertime
30th Jan 2014 08:51

The beneficial interest were changed with a deed, I just wondered whether we could revert back to the default of 50/50 after having completed Form 17 but from what you are saying once Form 17 is completed this cannot be withdrawn unless the beneficial interest is changed ?

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