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!
- Losses carry forward to self employed 207 3
- First director's salary payment 3 months after ltd company formation 233 4
- Travel is part allowable if combined with personal holiday 290 4
- FHL - hedge purchase 116 1
- Do you use commercial software for Self Assessment tax returns? 536 18
- Fees 489 6
- HMRC Post 591 8
- Time to ditch Sage? 447 8
- CWF1 - is it still required?? 450 8
- ACCA Special Business Resolutions... 295 3
- www.pool.adzio 175 2
- Accounting Web - What is happening? 1,883 43
- Agent Authorisation Issue 293 3
- Transactions with directors 484 3
- CT600 - Credit balance in expenses? 314 9
- Non VAT invoices 253 4
- Client in dispute with Customer over cancellation charge 1,441 32
- Correcting earlier year CT600s 283 5
- Form 17 Download 201 1
- Claiming VAT on car lease 602 28
- Chart of account segments; Balance sheet vs P&L 769
- Any knowledge of salesorder.com 421
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 371
- Electric Car 304
- S222 Charge 255
- Corporation tax penalties and fines on the CT600 218
- IP trans to holding company 198
- Software to Deal with Amazon and Ebay Sales 191
- AIA 189
- Best way to convert Sage data to VT Transaction+ 185