Transferring interest in property to spouse and rental income via Form 17 and Declaration of Trust
I have a client who owned his own house via a mortgage before his then partner moved in with him. They married, still live there and are thinking of moving house and renting the old one out.
From what I understand, the hubby could complete a declaration of trust now to give his new wife benefical ownership of a ratio of say 70:30. By doing this, and then submitting Form 17, the rental income would be treated as being split in that ratio and the couple benefit from two sets of letting relief, PPR exemption and CGT personal allowance when the property is sold.
I have read somewhere however that the couple have to be tenants in common (joint legal title no?) before altering ownership by a declaration of trust, for the Form 17 election to be effective under I think S282B ICTA 1988. Is this correct, or will the declaration of trust do the job without bothering the mortgage company?
Or is there another way of the client achieving two sets of CGT exemptions and splitting rental income without the legal shenanigans that gainfully employ solicitors that I am forgetting?
I've been going round in circles with this one. Sorry, and thanks for any help!
- error on companies house accounts 719 18
- RTI penalties 71 1
- ACCA, ACPA, IFA, ICPA 511 7
- Bookkeeping software for cafe and VAT 128 2
- How do we get US withholding tax back? 306 5
- US Sales Tax 111 1
- Does SMP and SPP go up if leave goes across 2 tax years? 367 15
- Anti- Money Laundering - CIMA Practising Certification Application 198 3
- Simplified auto enrolment? 127 1
- Group Relief 126 4
- R&D Credits 101 1
- Is the annual Money Laundering Payment tax allowable 248 7
- VAT Reg.for sole trader with 2 S/E 118 2
- Clients 678 14
- Advice needed on my practice but not my clients 305 4
- Leaving the flat rate scheme 132 3
- Starting new accounting business 295 5
- Is a property owner charging a peppercorn rent to a limited company acceptable 462 10
- Sage Payroll 118 1
- SAGE 50 - Invoice Date 115 2
- QROP pension input amounts 498
- HMRC BENCHMARK EXPENSES 481
- write off loan or loan to equity swap or both 444
- EPS and CIS deductions 298
- Sole trade business in UK, but the owner works from EU 290
- Construction CIS LLP Company 283
- Stamp duty on house transfer between spouses 247
- Lets hear it for HMRC! 205
- SAGE winforecast 203
- LIVE: Budget aftermath webinar 186