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When completing a Form 17 do i need to file a TR1

Form 17 and Dec of Trust have been completed, but do i need to file a TR1 with Land Reg?

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Husband and wife are informing HMRC of a split in rental income so Form 17 and a Declaration of Trust have been completed. I am now thinking whether I need to file a TR1 with Land Registry informing them of the change in legal title?

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By Accountant A
10th Oct 2019 16:14

Does a DoT involve a change in legal title?

I'd be asking the solicitor who drafted it.

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Replying to Accountant A:
RLI
By lionofludesch
10th Oct 2019 19:54

So would I.

It's his job.

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Replying to lionofludesch:
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By unearned luck
10th Oct 2019 22:31

I hope you and accountant A are right in assuming that a solicitor drafted the DoT. It's an odd question, oddly worded. I mean when a client buys or sells property I don't expect to be responsible for filing the necessary land registry forms. So there is a nagging suspicion in my mind that the DoT has been drafted by the OP. If so, I hope that he or she has got it wrong by not drafting it as a deed, as at least then he wouldn't have committed a criminal offence and only a tort.

I also think that drafting and filing a form TR1 might also be a reserved legal activity.

To the OP:

Note the purpose of form 17 is not to inform HMRC of a split in rental income. It is an election to be taxed in accordance with the way the property is owned. If the property is owned as tenants in common in unequal shares but the couple are content to be taxed on the deemed 50:50 basis then no form 17 should be submitted.

"inform HMRC of a split" suggests that the property was in he sole name of one spouse. If so, and there is a mortgage I trust that SDLT has been thought about.

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Replying to unearned luck:
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By thomas34
11th Oct 2019 08:20

If filing a TR1 form is a reserved legal activity then I've broken the law.

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Replying to thomas34:
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By unearned luck
12th Oct 2019 17:03

If you did so on behalf of a client and are not legally qualified, then It seems so.

Para 5, sch 2 of the Legal Services Act 2007:

"(1) “Reserved instrument activities” means—
(a) preparing any instrument of transfer…for the purposes of the Land Registration Act 2002 (c 9);
(b) …lodging a document for registration under that Act;
(c) preparing any other instrument relating to real or personal estate for the purposes of the law of England and Wales or instrument relating to court proceedings in England and Wales."

I note that the marginal notes to form TR1 include this
“The transferor must execute this transfer as a deed using the space opposite”.

If you also prepared the form TR1 as well as lodging it, then there will be three counts on your charge sheet:
1. Preparing an instrument of transfer
2. Lodging a document
3. Drafting a deed (“any other instrument”).
Go directly to Jail. Do not pass Go. Do not collect £200.

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By andrew1211
11th Oct 2019 10:23

.

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