Form 17 and Tenants in common

Hi there, Hi, can you please confirm Form 17 is for people who owns property jointly as joint tenants or tenants in common 50/50? Thanks

Hi,

The form 17 only applies to married couples who wish to report a different income from property split other than 50/50.

Thank you.

 

Thanks, to clarify further - it doesn't matter if married couples hold the property as joint tenants or tenants in common with 50/50 split? The only condition is that they have to be married?

Hi,
It does matter how the property is held.  You do have to be married or in a civil partnership to use a Form17.
A Form 17 declaration however cannot be made where a husband and wife or civil partners own property as beneficial joint tenants. In these circumstances the couple do not own the property in shares at all but are entitled jointly to the whole of both the property and the income.
This is distinct from the situation where the husband and wife or civil partners own property as beneficial tenants in common where they are each entitled to specific shares in the property and the income arising.  TSEM 9850 advises:
TSEM9850 - Property held jointly by married couples or civil partners: Form 17 rule - declaration must reflect reality.
Thank you.
 

Thanks - very clear and useful. Separate question, if I may. How does it work in married couples where one person buys the property(after they are married) just under his name? As I understand per TSEM9520 - they can do a written declaration of trust to transfer the 'income' into their spouse name without any need of submitting this to HMRC or elsewhere. Please confirm if this understanding is correct.

Hi ,
 

Yes that is correct you can transfer the beneficial interests of the property by setting up a deed of trust.  A declaration of trust is a legally binding document that creates a trust.  However most types of trusts giving an interest in property to somebody who is not the legal owner now need to be registered with HMRC via the Trust Registration Service.  You can find guidance on the registration requirements and how to register here : Register a trust as a trustee .  There’s also more information about what type of trusts need to be registered at : Trust Registration Service Manual   . Thank you .

Hi, I am not a HMRC Admin but you may want to read the following link as married couples cannot only assign a right to income for tax purposes. You would need to also give a right to the capital if you wish to transfer the income. https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem4205