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Where Taxpayers and Advisers Meet

Transfer income to wife. Deed of Trust

cascas
Posts:35
Joined:Sat Jan 01, 2011 10:57 pm
Transfer income to wife. Deed of Trust

Postby cascas » Mon Oct 04, 2021 5:22 pm

Am I correct in my reading, that the beneficial ownership of a property (No mortgage) can be transferred to a partner via a Deed of Trust (NO SDLT / CGT issues).

At this stage rental income would be payable by the new beneficial owner on their own SA100

Does the Deed of Trust need to be filed anywhere, or just the income declared on the appropriate self assessment forms?

Jholm
Posts:261
Joined:Mon Mar 11, 2019 4:22 pm

Re: Transfer income to wife. Deed of Trust

Postby Jholm » Tue Oct 05, 2021 9:28 am

Yes, although possible SDLT issues, depending on the value of the share transferred. Someone else here will be better suited to comment on the SDLT position.

CGT is not charged on spousal transfers and your spouse will acquire the same base cost that you had (apportioned to the share transferred).

You wouldn't file the deed with HMRC but you would submit Form 17 to notify them of any ownership that is not 50/50. If this is not done, the tax position is that HMRC will treat the income as 50/50 no matter what the actual split is.

pawncob
Posts:4877
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Transfer income to wife. Deed of Trust

Postby pawncob » Tue Oct 05, 2021 7:34 pm

OP used the term "partner", not wife, so there may be CGT implications.
With a pinch of salt take what I say, but don't exceed your RDA

maths
Posts:8430
Joined:Wed Aug 06, 2008 3:25 pm

Re: Transfer income to wife. Deed of Trust

Postby maths » Tue Oct 05, 2021 10:34 pm

Assuming husband/wife then on lodging Form 17 with HMRC it will also be necessary to to provide evidence of the beneficial interests in the property normally by attaching a relevant declaration of trust.

bd6759
Posts:3745
Joined:Sat Feb 01, 2014 3:26 pm

Re: Transfer income to wife. Deed of Trust

Postby bd6759 » Thu Oct 07, 2021 10:56 am

1. No SDLT if no consideration. “Value” doesn’t come in to it.

2. If married, no CGT

3. Even if married, Form 17 is not relevant because property is not held in joint names.

3. Possible CGT if not married.

maths
Posts:8430
Joined:Wed Aug 06, 2008 3:25 pm

Re: Transfer income to wife. Deed of Trust

Postby maths » Thu Oct 07, 2021 3:50 pm

It is not clear from the post, possibly implicit, that the legal title is not in joint names.

chocaholic
Posts:22
Joined:Wed Aug 06, 2008 3:26 pm

Re: Transfer income to wife. Deed of Trust

Postby chocaholic » Tue Jan 18, 2022 4:55 pm

I am in a similar position to the original poster. The property has been on my sole name for a number of years, there is no mortgage. I would like my husband to be beneficial owner for the rental profits.

If form 17 is not relevant because the legal title is not held in joint name.... how else do I notify HMRC of the change in beneficial ownership? Would a handwritten declaration of trust suffice?

Thank you in advance.


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