This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

HMRC Form 17 unequal split

Mason1880
Posts: 13
Joined: Fri Apr 13, 2018 8:32 am

HMRC Form 17 unequal split

Postby Mason1880 » Thu Mar 07, 2019 7:12 pm

Could someone clarify, if we were to change the split of beneficial interest via form 17, does anything need to be recorded at land registry or is this simply a tax matter.

Also are there other implications in the future through doing this?

Any help would be much appreciated

maths
Posts: 7550
Joined: Wed Aug 06, 2008 3:25 pm

Re: HMRC Form 17 unequal split

Postby maths » Fri Mar 08, 2019 2:48 pm

The Form is relevant for income tax purposes where a property is jointly legally owned by a married couple who wish any income arising from the property to be split for income tax purposes in a ratio other than 50/50. The income split must reflect the beneficial ownership split.

Filing Form 17 has no effect on the legal ownership with which Land Registry is concerned.

Mason1880
Posts: 13
Joined: Fri Apr 13, 2018 8:32 am

Re: HMRC Form 17 unequal split

Postby Mason1880 » Fri Mar 08, 2019 3:48 pm

Would land registry still need to be informed?

maths
Posts: 7550
Joined: Wed Aug 06, 2008 3:25 pm

Re: HMRC Form 17 unequal split

Postby maths » Fri Mar 08, 2019 4:02 pm

No; only if legal ownership changes.

AGoodman
Posts: 827
Joined: Fri May 16, 2014 3:47 pm

Re: HMRC Form 17 unequal split

Postby AGoodman » Tue Mar 12, 2019 12:09 pm

Note that if you are joint owners, Form 17 only notifies HMRC that you are moving to an uneven split. You also need a declaration of trust signed by you both to actually create the uneven split.

As maths says, it isn't necessary to register the declaration of trust with the Land Registry, although you can do so - it creates a restriction on the register to show that if one dies, the other does not automatically become the sole owner.


Return to “Property Taxation”