8:06 AM, 2nd March 2016, About 10 years ago 17
Text Size
Categories:
With restrictions mortgage tax relief coming in I will end up with income well over £100,0000. All my properties are currently in my name. Am I right in thinking I should make a declaration of trust giving my wife a proportion of my income and file form 17 to HMRC to do so.
I believe this is the easiest way to go about things. As the trust is with my wife rather than say a company reading between the lines it looks that it is best to keep it between us and HMRC and not inform mortgage lenders.
I appreciate that may be against their T&C’s but I believe it is common practice when trust is only between you and spouse. I presume SDLT is still payable on the loan secured on property and so therefore need to do before April so as to have zero liability.
Any advice greatly appreciated especially how common this is and whether mortgage company informed
Thanks
Steve
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
Previous Article
NAEA confirm 14 year low in housing supply
David Mensah
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since June 2014 - Comments: 106
14:51 PM, 6th March 2016, About 10 years ago
I see the message above about getting professional advice, but the consultation about 3% SDLT on residential is not yet closed, so I’m happy for unprofessional opinions on the following:
If you already own a letting property with a non-spouse & transfer some fraction of ownership through a declaration of trust , will this attract the extra 3%?
David Mensah
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since June 2014 - Comments: 106
14:52 PM, 6th March 2016, About 10 years ago
to Steve:
Note that inter-spousal transfers (if they are gifts) are not subject to CGT and also not to SDLT as long as there is no consideration (i.e. it is a true gift so that effectively no money or liability changes hands). Be careful when there is a shift of mortgage responsibilities … see http://www.taxcafe.co.uk/resources/stampdutytrap.html
Itchy Scratchy
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since July 2015 - Comments: 6
17:01 PM, 5th April 2016, About 10 years ago
Following up on this. If a property in the husbands name is 99% gifted to the wife using a DoT of Beneficial Interest can the wife claim the mortgage interest as an expense on her tax return. i.e. she actually pays this using the money made from the rent but the mortgage is still in husbands name?
Bill
Lee Nutter
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since April 2016 - Comments: 1
3:24 AM, 6th April 2016, About 10 years ago
Reply to the comment left by “Neil Patterson” at “02/03/2016 – 08:09“:
Hi. I’m in a similar situation and have attempted to contact these people, (buytoletconveyancing) several times, as has my wife. But there’s no response – no out of office, not even any recognition that your email has been received. We had a fair bit of business to put their way but I don’t feel like I should be chasing them to give them money. Absurd. You guys needs to sort this out. Appreciate its busy with all the stamp duty nonsense but if I ran my business this way, well… I think you get this gist.
Neil Patterson
Read Full Bio
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since February 2011 - Comments: 3452 - Articles: 286
8:20 AM, 6th April 2016, About 10 years ago
Reply to the comment left by “Lee Nutter” at “06/04/2016 – 03:24“:
Hi Lee,
I will draw their attention to your comment and double check with them that they received your enquiry. Please accept my apologies in the mean time.
Neil Patterson
Read Full Bio
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since February 2011 - Comments: 3452 - Articles: 286
8:31 AM, 6th April 2016, About 10 years ago
Reply to the comment left by “Lee Nutter” at “06/04/2016 – 03:24“:
Hi Lee,
I have found your original enquiry and copied you in to my email to our solicitors.
Sunny K
You're Missing Out!
Members can reply to discussions, connect with experienced landlords, and access full member profiles showing years of expertise. Don't stay on the sidelines - join the UK's most active landlord community today.
Not a member yet? Join In Seconds
Login with
Member Since August 2014 - Comments: 46
10:57 AM, 6th April 2016, About 10 years ago
Hi Lee,
We had similar issues with them. Ultimately I got through a partner Paul Sheerin. He told me they had a new IT system and had lots of issues like this. I have since had good service from them. They are quite facile with transfer, covenant and legal issues around flat conversion. I have again found good professional services via this website. Thanks Mark Alexander and Neil Patterson.