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!
- Finding a Company UTR for a newly formed company 116 1
- Recomendations for a purchase order management book please? 115 1
- Instant CPD offer 279 4
- Cash basis 513 13
- Income from rent charged to business 119 2
- payroll software 364 3
- CIMA accountant wants to start consultancy 435 5
- Statutory sick pay 307 4
- Dividend in specie 367 9
- Complicated Company car purchase 220 2
- Ltd Company Buying Own Shares and Transferring Assets 174 3
- Retail vat schemes for a restaurant 145 1
- Rental Property W&T And Equipment 269 1
- Legislation access for part-time sole practitioner? 294 1
- Ownership of land - declaration of trust 164 3
- Fee base v staff ratio 381 6
- NIC thresholds - two employments 1,854 27
- Statutory Accounts - Dividends Disclosure Note 332 3
- Unincorporated organistion ceasing to exist 255 2
- Gift in kind to charity by company: services 106 1
- Skandia using wrong address 572
- FHL, period of grace and Entrepreneur's relief 306
- Does anyone use PS Financials accounting software out there? 303
- Employee rewards 288
- Gift of reversion and lease into trust by two different people - later PPR 250
- EPS Analysis - Change to EURO 227
- Etax Australian 186
- LLP in Construction Industry 153
- Selling On Amazon & Calculatign Prices/Vat 131
- Interest and late payment charges HMRC 130