Thanks for the reply Admin2,
In our case, the effect of the deed will be that the "beneficial interest in the property" when we sell will be 50/50, whereas the "beneficial interest in the income" until we sell will be 100/0 (my wife will run the BTL property totally separately from any joint accounts we have) - as these are different %'s can a Form 17 still be used (the notes to Form 17 say it cannot be used if you are entitled to the income in different proportions to your beneficial interest)?
Or should we declare 100/00 for both the beneficial interest and the income on Form 17? And if we do this, would we have to complete another Form 17 showing 50/50 for both the beneficial interest and the income when we sell?
Declaration where the split of beneficial ownership and income differ.(Apologies if this has previously been answered or if this is not the right place to ask...)
My wife and I own a property as tenants in common 50/50. We now want to rent out the property and assign all the income to my wife. Our solicitor has drawn up a deed of trust holding the net rents and profits until sale 100% my wife - 0% me and the property and proceeds of sale 50% - 50% if we sell the property.
Form 17 notes "it cannot be used if you are entitled to the income in different proportions to your beneficial interest", which will be the case here. CG2202 notes that "a couple cannot make a declaration where the split of beneficial ownership and income differ. Nor do they have to make a declaration even if they are entitled to".
Can I take it from the notes on F17 and CG2202 that we do not need to notify HMRC of this arrangement, other than on my wife's self-assessment form? If we do need to notify HMRC, how do we do this and do we need to send them our deed of trust or a copy?