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Posted Wed, 21 Feb 2024 16:21:16 GMT by
Hi, In the following case what is required for processing to ensure correct beneficial Interest: Brother and sister are legal owners of house (tenants in common 50/50). Each have a spouse that through spouse status have beneficial Interest in their 50% e.g. Brothers ownership (50%) but with spouse beneficial interest can this be split 25/25% with spouse. Is this allowed and if so how should it be correctly processed. Your clarification would be greatly appreciated.
Posted Thu, 22 Feb 2024 09:44:07 GMT by HMRC Admin 25
Hi All,
The beneficial ownership can be any split that you wish.
You will need to submit a declaration of trust showing the beneficial split that must be signed by both parties (brother/spouse, sister/spouse) and witnessed by a 3rd party.
As its a legal document involving property you may wish to consult a lawyer. the alternative split cannot be backdated.
Thank you 

Posted Thu, 22 Feb 2024 12:41:35 GMT by All
hi, Thanks for your quick response. Some sites are stating a deed of assignment can also be used as it is a beneficial and not a legal split, is this correct. Does form 17 have to be also submitted in conjunction with this?
Posted Mon, 26 Feb 2024 15:34:19 GMT by HMRC Admin 19

Spouses or civil partners have the choice of declaring a 50/50 split on assets by default, even if they beneficially own the assets in unequal shares. This applies for income arising from the assets or gains from the disposal of the assets.  

Form 17 allows the married couple or civil partners to elect to split income, and, or, capital gains against the unequal share of ownership, along with a deed of trust, showing that unequal ownership share.

You cannot just choose the unequal share to suit your circumstances. It is either 50% or the confirmed share of joint ownership, as defined on the deed of trust.  

The form 17 must be sent to HMRC within 60 days of the form 17 being signed, otherwise it becomes invalid.

Thank you.

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