Jointly owned property

Beneficial ownership

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This maybe a silly question but when two people hold property jointly on a basis other than 50/50, so for example say it is 90%/10% between a married couple, I assume the rent should be paid out to them on the same basis? If they have a joint bank account, is this ok as long as all the relevant trust docs etc. correctly state who is entitled to which bit? 

I assume they dont need to go as far as paying the rent to them individually from the letting agent based on the 90/10 split?

p.s I am aware of the requirement for them to file a form 17 with HMRC.

 

 

Replies (5)

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By johngroganjga
28th Dec 2019 09:40

They can receive it however, and in whatever proportions, they want. Where it is paid has nothing to do with what they put on their tax returns. Yes form 17 is what they need to document an unequal split for tax purposes.

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Replying to johngroganjga:
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By carnmores
28th Dec 2019 14:15

Hi John, if it is already an unequal split then a form 17 could make it equal or change the 90:10 is that what you are saying?

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By johngroganjga
28th Dec 2019 14:47

I think I’m saying that form 17 is what is required to document (for HMRC’s purposes) that the split is unequal.

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By carnmores
28th Dec 2019 15:00

I was just trying to clarify in my own mind the difference between a joint tenancy and a tenancy in common. If the land registry reflected an unequal split (can it) then is a F17 still required?

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Replying to carnmores:
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By SA2016
29th Dec 2019 19:14

This is my understanding;
An unequal split can only be achieved if they are tenants in common, however for a married couple even if a property is purchased on a basis other than 50/50, HMRC will still assume it is owned 50/50 unless a form 17 is sent to them within the necessary time limits.

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