Deed of Assignment

Hi I own a second property that is solely in my name that am looking to rent out. I would like to transfer 100 % of the rental income from this property to my wife who is currently a homemaker with no income and will be managing this property and this will become her main source of income. She will register for self-assessment and pay any tax due on the rental income above her taxable allowance. I would like to ask: 1. Will a Deed of Assignment be sufficient to serve this purpose 2. As the Property is solely in my name do I still need to complete Form 17 and submit this to HMRC along with a copy of the Deed of Assignment? 3. Will there be any immediate tax that I will be liable to pay for transferring 100% beneficial interest to my spouse such as any Capital gains or Stamp duty. Kind Regards A.H

Hi,
 

Thank you for your question. I'm sorry to advise you that form 17 is not applicable in your case as you own 100% of the property. Form 17 is only applicable if the property was jointly owned between married couples, with a 50/50. To facilitate form 17 split, you would need to transfer 50% of the property ownership to your wife, under a formal Deed and register her as a joint beneficial owner. Please refer to the following for further information. PIM1030 - Introduction: jointly owned property & partnerships - HMRC internal manual - GOV.UK (www.gov.uk) TSEM9800 - Property held jointly by married couples or civil partners: contents - HMRC internal manual - GOV.UK (www.gov.uk) Capital Gains (CG) is chargeable in respect of who is the actual beneficial owner of the property. As it stands you being the 100% owner of the property, you will be liable for CG. Furthermore, if you do transfer a beneficial interest to your wife, you are liable to CG on the transfer. You must pay Stamp Duty Land Tax (SDLT) if you buy a property or land over a certain price in England and Northern Ireland . Thank you .