Incorrect accountancy advice, Form 17
Several years ago, my husband and I had our tax returns for the two properties we own completed by a registered accountancy firm. They recommended a Deed of Trust, so that we could
Declare our rental income in my name, as I am a lower rate tax player. We did this, and were told quite explicitly that my husband no longer needed to complete tax returns.
We continued to submit tax returns for me putting the rental income in my name and paying at a lower rate of tax.
Last year while we were completing my tax return, we saw reference to something called a form 17. We realised that this should have been completed originally. We have since submitted this to HMRC, and repaid tax owing for James
until this was completed on a 50-50 basis, as directed by the Let Property Campaign.
We believe the accountancy firm was negligent in not letting us know we should have completed a form 17 alongside the declaration of trust. We are currently taking the accountancy firm to court on this basis. Has anyone else been successful in doing this? The firm claim that they are not negligent, and that we are no worse off than we would have been had we not received the advice in the first place. This seems to be ludicrous position, and it is quite clear they had no idea at the time that a Form 17 was even a thing. Legal advice has been supportive of our position, though we intend to take the case to court without this as it is Small Claims. Any advice gratefully received.