Form 17

Dear HMRC, I find many confusing guidelines over Form 17 and need help on this topic. My wife and I own a property on a 50/50 basis, and we are currently getting rental income from this property. As we advance, we would like to do one of the following. 1 - I would like to transfer the rental income to my wife. I understand that we need to submit Form 17 indicating the rental income transfer to my wife and pay appropriate tax via Self-Assessment, but in this case, do I need to declare trust or deed? If so, do I need to get it executed by Lawer, or can this be done ourselves? 2 - As mentioned above, my wife and I jointly own that property on a 50/50 basis. Please guide us on the process if we would like to transfer all of the rental income to my daughter, who is 18+. She is not on the ownership with the land registry. Thanks

Hi,

If you are wanting to change the split of Income Tax from property you will need to complete form 17 and provide evidence that your beneficial interests in the property are unequal for example a deed or declaration of trust. 

You can find guidance here: 

TSEM9842 - Property held jointly by married couples or civil partners: Form 17 rule: introduction
TSEM9851 - Property held jointly by married couples or civil partners: Form 17 rule - evidence
TSEM9520 - Ownership and income tax: express trusts - written declaration

A declaration of trust can be executed by a solicitor.

If transferring rental income to another family member, form 17 is not required. You will retain legal ownership of the property. A declaration or deed can be used to transfer the beneficial interest in a property which is covered in the guidance above.

Thank you.