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Posted Tue, 09 Feb 2021 14:38:09 GMT by sundhillon123
Hi I am a higher rate tax payer with a main residence in my sole ownership. It is rented out while I work overseas. We will return to it. I am married. I would like to draw up a declaration of trust, assigning 99% of the beneficial interest to my wife. The question is does HMRC need to see the declaration of trust in the case of the property held in sole ownership, or do I just need to keep it to hand should HMRC request it (unlike joint ownership, where the trust, and Form 17, need to be submitted?
Posted Wed, 10 Feb 2021 14:34:39 GMT by HMRC Admin 5

If your wife has a beneficial interest in the property, we will need to see the declaration of trust along with a completed form 17.

Thank You.
Posted Wed, 10 Feb 2021 15:03:52 GMT by sundhillon123
Thanks. Just a bit confused. Yesterday I called HMRC and was told that I did not have to do this as the property would remain in my sole ownership and I would be holding my wife's beneficial interest in trust. In the case of sole ownership declarations of trust need to be completed but not submitted, and form 17s aren't required at all. Would we need to submit the declaration of trust and form 17 if 100% of the beneficial interest were allocated to my wife, held in my trust? I don't mind submitting the paperwork at all - just want to make sure I understand what is actually required. Thanks again.
Posted Fri, 12 Feb 2021 18:55:08 GMT by Danyeli
Dear Valuable related webside manager, I'm writing from Turkey, we are planning to esteblish Prefessional Facility Management Service company in England.  . Our firsr question is that is there any guide about facility management and tax relationship for England according to the tax law? Second question as a, we are giving facility management start-up educations too. For both service income and vat tax percent are same or no?

[Weblink removed - Admin]
Posted Mon, 15 Feb 2021 17:36:51 GMT by HMRC Admin 10

The default 50/50 rule and form 17 election applies only to income arising from property held in the joint names of individuals who are married to each other, and who live together.

To the extent the property is not held ‘in joint names’, then form 17 is not appropriate.

From the date the declaration of trust came into effect we would expect the income to be reported by reference to the respective beneficial interests.

To the extent that 100% of the beneficial interest were transferred to your wife; then from that point, the general rule (TSEM9160) is that your wife is entitled to 100% of income and is taxable on 100% of the income.

The date beneficial interest is transferred is very much a matter of fact; there is no requirement to submit any documents unless HMRC were to request them in the future.

Ownership and income tax: legal background: ownership - income follows property


Posted Mon, 15 Feb 2021 18:34:53 GMT by sundhillon123
Thanks so much. I appreciate your help. Just so I am as clear as possible: I understand from your response that if I were to own a property in my name only, as a sole owner, but elected to transfer 100% of the beneficial interest to my wife, then she would be entitled to all of the income and would be taxable on all of the income. No Form 17 would be required and I would not need to submit my declaration of trust. Can I then ask what you mean by "held in joint names"? Do you mean the legal ownership as in the title deeds, or do you mean beneficial interest too? So, more specifically, if I were to again own this property in my sole name but this time transfer only 99% of the beneficial interest to my wife, retaining 1% myself, would that be deemed "held in joint names" by HMRC and therefore require a Form 17 and declaration of trust to be submitted? Obviously the income would be distributed in line with the 99% to 1% beneficial interests ratio, and taxes paid accordingly. Thanks again.
Posted Wed, 17 Feb 2021 13:13:19 GMT by HMRC Admin 19
Hi Danyeli,

Please see the links below for further information regarding setting up a business and how to register as an overseas company:

Set up a business

Register as an overseas company 

Thank you.
Posted Thu, 18 Feb 2021 10:32:36 GMT by HMRC Admin 11
Hi sundhillon123, 

In respect of the first part of your further question I can confirm that the first part is correct as per our previous answer. In example, No requirement for a Form 17 or submission of a Declaration of Trust.  

In respect of the joint ownership of a property please refer to the guidance held at:
Joint property ownership

If the rental property is held in joint names then a Form 17 election and a Declaration of Trust would need to be submitted to HMRC.  

Thank you for your question.
Posted Tue, 02 Mar 2021 18:17:04 GMT by David Goodman
I have a similar question here I own a rental property in my sole name and want to make my wife the beneficiary. - The deed would state that the legal title of the property is held in my sole name but that it is held upon trust beneficially for you and your wife in particular shares (for example 80%/20% in your wife's favour). The deed would also state that any rental income derived from the property will be due to each of you in the same unequal shares. do I need to submit a deed of trust and from 17 or can I just keep the deed of trust on record as and when HMRC may want to see it.
Posted Wed, 03 Mar 2021 13:57:40 GMT by HMRC Admin 17

Thank you for your Question. 

You would have to submit the Form 17 to us to record the unequal split for the rental income, supported by the Trust deed.

Thank you.
Posted Wed, 03 Mar 2021 16:20:43 GMT by sundhillon123
Hi Admin 17, would you mind checking on that answer? I've had two calls with HMRC now where I was told that HMRC is only interested in the legal ownership. Therefore, if the legal ownership (title) is held in one name there is no need for a Form 17 and the trust deed simply needs to be retained should HMRC request to see it it at a later date. I asked repeatedly and received the same unequivocal answer: HMRC is interested only in the legal ownership; I can own a property solely in my name but have the beneficial interest split between myself and my spouse in whichever way I wish as long as the trust document reflects this and the rental income is split in the same way. No form 17 is required.
Posted Thu, 04 Mar 2021 08:58:23 GMT by David Goodman
Hi Sundhillon123 and HMRC 17 - I have also been told the same thing when speaking with a HMRC technician. Secondly I have been told conflicting information on Mortgage interest relief - When on the phone to one technician I was told that as the mortgage is in my sole name then the relief against the interest element would only be applicable to me regardless of the beneficial split. Then a second technician told me it would need to be split as per the beneficial interest reflected in the deed of trust please can you confirm this as this should be black and white with no grey areas.
Posted Fri, 05 Mar 2021 12:10:22 GMT by HMRC Admin 4
Thank you for your question. I can confirm that a Form 17 is  not required if you are the sole legal owner of a property. This is what we meant when we said the first part of your question was correct. There is no need to submit any documents unless HMRC requested them.
Posted Fri, 05 Mar 2021 14:04:39 GMT by sundhillon123
Hi Admin 4, sorry I was actually referring to Admin 17's answer to David Goodman's question in the context of a property in sole legal ownership: "Hi, Thank you for your Question. You would have to submit the Form 17 to us to record the unequal split for the rental income, supported by the Trust deed." I would really appreciate absolute confirmation that where a property is legally owned by one person, a Form 17 and trust declaration do not need to be sent to HMRC, no matter if and how the beneficial interest might be divided between spouses in a declaration of trust - equally or unequally. The trust declaration merely needs to be produced should HMRC request it. Many thanks.
Posted Wed, 10 Mar 2021 11:43:19 GMT by HMRC Admin 4
Thank you for your question.The default 50/50 rule applies only to income arising from property held in the name of the individuals (legal owners) who are married to or who are civil partners of each other and live together. Married couples may then ask to be taxed on their actual entitlement to income from jointly held properety (on the basis that it is held other than 50/50) using a form 17 election. To the extent that the property is held in one spouses name (legal title) then a form 17 is not required. We would simply expect the income to be split between the owners in the same proportion that the property is beeficially owned. For further information please see

Trusts, Settlements and Estates Manual
Posted Mon, 08 Nov 2021 18:01:48 GMT by daddycool Nathan
I am in the process of transferring 50% of a buy to let property to my son, the other 50% remaining with his mum. I believe I will need a deed of trust to split the income 1% mum 99% son, but no form 17 is required? No consideration in this transaction. What are the SDLT implications here?
Posted Tue, 09 Nov 2021 17:05:28 GMT by HMRC Admin 10
Hi daddycool Nathan

Thank you for your question.

Joint owners can agree a different division of profits and losses so the share of the profits or losses will be different from the share in the property.

Please refer to guidance at:

jointly owned property & partnerships

However, it is not clear from your question how you intend to transfer your share of the property to your son.

Please contact us on 03000 200 3300 to explain the position in full.

For implication regarding SDLT, please refer to the guidance at:

Stamp Duty Land Tax relief for land or property transactions

Posted Mon, 15 Nov 2021 04:11:02 GMT by A Kwok
Hi Admin, I have similar question on declaration on property income. I received a property as gift from my parent before enter in UK via BNO visa. The income continue received by my parent, can I make a declaration (TSEM9520) on trust for my parent to transfers the beneficial ownership from myself to my parent ? Thanks Kwok
Posted Tue, 16 Nov 2021 14:16:23 GMT by HMRC Admin 17

Thank you for your question.

Whoever has beneficial ownership of the property has beneficial ownership of the income.

For this not to apply, there must be a separation of income from property by way of a valid declaration or deed of trust.

Please refer to the guidance :

Trusts, Settlements and Estates Manual     . 

Thank you.
Posted Tue, 11 Jan 2022 09:23:38 GMT by ldyzracn
Hi Admin I just came across this site and is very useful. Regarding a rented and mortgaged property I am looking to transfer 100% of the beneficial interest (via a deed of trust) to my wife so that she receives the rental income from the property due to her lower tax bracket. She is not on the title deeds of the property (I am soley as purchased prior to our marriage), however, is named on the joint mortgage for the property. Please could you confirm my understanding that: 1. As there is no consideration (i.e gifted/no monies are being exchanged) then there is no SDLT liability even though there is an outstanding mortgage over the threshold? 2.I do not need to provide documentation to HMRC regarding the deed of trust, rather to hold on record if required? This is as there is no change of ownership on the title? Many thanks

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