I own a property for which I am the sole registered owner. Property was bought after we got married, and currently has no mortgage.
I am is the higher earner and the property is now rented. Can I transfer 100% ofthe rental income to my wife to make use oftheir personal allowance and marginal tax rates.
- Do I need to submit a Form 17 and/or create a declaration of trust?
- Is a verbal agreement between me and my partner enough?
- Since my property's income will be reported in my spouse's tax return. Does HMRC require us to also submit any written document/declaration when we file ourtax returns this year?
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Replies (28)
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Good starting point would be to speak to your accountant. They will be best place to know your personal circumstances and therefore be able to advise accordingly
"Can I transfer 100% of the rental income to my wife...". Yes you can. But I'd expect HMRC to invoke the settlements legislation. You should be more generous.
It’s always a good idea to say “please”.
Correct although I was once rebuked by a moderator for making the same observation.
How many times have we seen this question here? Why not do a search of this site? This has nowt to do with Form 17 and no, a verbal agreement is not enough and you need a written DoT (which needs TRS).
How many times have we seen this question here? Why not do a search of this site? This has nowt to do with Form 17 and no, a verbal agreement is not enough and you need a written DoT (which needs TRS).
I don't believe that TRS is needed.
I believe the sanction is a fine and/or prison (it* being a criminal offence), not lightning.
Though you may be struck. Off, that is - remember the Peterken case?
* I'm not defining "it" - but an accountant or tax advisor should be familiar with the provisions.
BTW, did you really mean DoV? I wouldn't go near doing one of those. Even for my own Estate.
Yep, DoV. It was for the estate of my late father in law twenty years ago. So, not a client and not for a fee (which I believe makes it OK) and I got it checked out by the trust team at the Big 4 firm I worked for at the time.
So before LSA?
In short, your claim is that God didn't punish you for not breaking UK law.
Maybe that's not quite the refutation of Justin's (correct) point that you were perhaps aiming for?
I'm a Chartered Tax Adviser and can post marketing on here. If people want to PM me they can.
If people want to post "rude" responses on here they have the right to do so.
I am the recommended tax adviser for a big letting agency in Cheltenham and was in the Expat Department in PWC for 5 years so doing letting income returns.
The same amount as you. Instead of sharing the answer for others to see you just contacted the op.
Yes and we certainly touched a nerve or two there I think! (She is not a lawyer as I suspected, but is good at wasting time nit-picking over obvious typos.)
An ability to record every six minutes spent nit picking over typos is the characteristic of a ...............................
No lawyer I know nit-picks over obvious typos, unless it's crucial in terms of evidence etc.
So along these lines, say ikarampa completed a Declaration of Trust or Deed of Assignment of Beneficial Interest so the property was held 50:50.
Essentially a Bare Trust would exist, would the Trust need to be registered with HMRC?
"...would the Trust need to be registered with HMRC?"
Qua tax authority or qua keeper of the TRS?
In the case of the former, 'no' as bare trusts don't need registration for SA (the income/capital gains belong to the bens). In the case of the latter, 'no' if the property is also conveyed into their joint names. With no conveyance registration is required as the legal and beneficial ownership are not the same.
Thanks and sorry I was a little vague, I was meaning TRS. Generally the solicitors we deal with wouldn't complete the conveyance (time/money), it's often a transfer into H&W joint names prior to sale re CGT Annual Exemptions etc.
