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Where Taxpayers and Advisers Meet

Form 17 - time to take effect

Joined:Sat Jul 14, 2012 2:02 pm
Form 17 - time to take effect

Postby kopo » Sat Sep 05, 2015 2:53 pm

I submitted a form 17 to HRMC to transfer the beneficial ownership of a property to my wife.
I then started to rent the property out (so I did the legal transfer before renting it out, properly documented by a sollicitor).
However they expect to take 4 month to process it...
Would someone know if I should declare the rental income as 50/50 until HMRC ackowledges, or can my wife already take the 100%?

Thanks in advance for your guidance.

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

Re: Form 17 - time to take effect

Postby pawncob » Sat Sep 05, 2015 8:52 pm

Form 17 doesn't transfer ownership, it gives notice of an income split.
HMRC taking months to process it doesn't stop it taking immediate effect.
With a pinch of salt take what I say, but don't exceed your RDA

Joined:Wed Aug 06, 2008 3:22 pm

Re: Form 17 - time to take effect

Postby King_Maker » Sun Sep 06, 2015 9:44 am

If the Declaration of Trust to transfer your share to your wife and Form 17 have been validly executed, the change in income sharing is immediate. There is no need to wait for HMRC acknowledgement.

If your wife now owns 100% of the property, then the CGT liability could increase on its disposal.

If you have ever lived in the property or if it's mortgaged, there could be CGT and SDLT implications.

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