Part property transfer to children-what forms do we need to send?

[patss]

Hi all

My client has an investment property that is jointly owned between the client, his wife and two adult children. Each year the husband and wife have been transferring 12.5% of their share of the property to their children. At present, they each own 25% of the property. However, the client and his wife want to transfer an additional 12.5% of their share to their children as a gift before 05.04.17. Therefore, the client and his wife will have 12.5% share each and his two children will have 37.5% share each. The property is fully let out and there is no mortgage on the property so the issue of transfer of the share of another 12.5% is not a problem.

My query is that do I need to notify the land registry of this change? The first time the property share of 12.5% was transferred the land registry forms were completed but what I am unclear about is whether the client needs to keep doing this transfer every year? Is there a specific form that I need to fill in and send to them if applicable?

Usually we send a form 17 declaration of trust to the tax office if there is a transfer between husband and wife. Is there another declaration of trust form for transferring the shares to your children? If yes, where can I find this form? If no, do we simply amend the form 17 declaration of trust form to show that the transfers have been made to the children & send it to HMRC?

Thank you in advance for your help.

[bd6759]

Form 17 is not a declaration of trust.

[maths]

You don't say in whose name the legal title is held.

All that is necessary is that after each transfer of a beneficial interest the legal owners execute a new declaration of trust confirming that the legal owners hold the property for X, Y, Z in beneficial share percentages A, B, C.

There is no need to notify Land Registry or HMRC but it may be that HMRC at some point request sight of the latest Declaration.

Form 17 Is irrelevant if legal title is held in names additional to the two spouses.