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Where Taxpayers and Advisers Meet

Transfer rental property to spouse

spenpil
Posts: 2
Joined: Tue May 15, 2018 1:14 pm

Transfer rental property to spouse

Postby spenpil » Tue May 15, 2018 1:43 pm

In a nutshell:
I own a rental property outright (no mortgage), which generates rental income of £12,000. The property is in my name alone. I am a 40% rate taxpayer, and my wife is a 20% rate taxpayer. I would like to transfer the rental income to my wife to take advantage of her lower tax rate.

I understand that benefit has to follow ownership, and therefore believe that I need to transfer part of the property to my wife, so that we can be set up as tenants in common with 99% of the rental income going to my wife, and 1% to me.

I've reviewed previous answers on this topic, and just want to make sure that the below is the correct process to follow:
1. Complete the Land Registry ‘transfer of part of registered title’ form TP1 to transfer part of the property to my wife
2. Set out the proposed share of ownership (i.e. 99%/1%) in a Declaration of Trust
3. File a Form 17 with HMRC within 60 days documenting the proposed share of income.

My questions:
- Is the above process all correct? Is there anything I've forgotten?
- Do I need a solicitor to help with the above forms? Would a conveyancing solicitor be best?
- Can this be reversed in future if, e.g. her pay increases, and there is no longer any reason to have the income in her name?

Many thanks in advance

pawncob
Posts: 4140
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Transfer rental property to spouse

Postby pawncob » Thu May 17, 2018 12:04 pm

Assets can be transferred at will between H & W, so no future problems.
Yes you can do it yourself, but don't expect any help from L.R.!!
With a pinch of salt take what I say, but don't exceed your RDA

Lee Young
Posts: 2650
Joined: Wed Aug 06, 2008 3:26 pm
Contact:

Re: Transfer rental property to spouse

Postby Lee Young » Thu May 17, 2018 2:04 pm

Form TR1 not form TP1
Lee Young
Solicitor, Chartered Tax Adviser and Trust and Estate Practitioner


Partner, Frettens LLP
lyoung@frettens.co.uk
01202 491701

spenpil
Posts: 2
Joined: Tue May 15, 2018 1:14 pm

Re: Transfer rental property to spouse

Postby spenpil » Fri May 18, 2018 10:08 am

Many thanks for replies! I will enlist the help of a solicitor.

Mrshare
Posts: 9
Joined: Mon Aug 13, 2018 7:19 pm

Re: Transfer rental property to spouse

Postby Mrshare » Tue Aug 14, 2018 12:18 pm

I am interested in how this all went and if there is any advise you could give me as I am in exactly the same situation.


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