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Transfer rental property to spouse

Posted: Tue May 15, 2018 1:43 pm
by spenpil
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

Re: Transfer rental property to spouse

Posted: Thu May 17, 2018 12:04 pm
by pawncob
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.!!

Re: Transfer rental property to spouse

Posted: Thu May 17, 2018 2:04 pm
by Lee Young
Form TR1 not form TP1

Re: Transfer rental property to spouse

Posted: Fri May 18, 2018 10:08 am
by spenpil
Many thanks for replies! I will enlist the help of a solicitor.

Re: Transfer rental property to spouse

Posted: Tue Aug 14, 2018 12:18 pm
by Mrshare
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.