Declaration of Trust issue?

Declaration of Trust issue?

9:00 AM, 9th April 2024, About 2 months ago 2

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Hello, We would like to revoke a Declaration of Trust currently in my husband’s name to reflect the usual 50:50 split as tenant’s in common.

The tenants in one of our properties have told us they are going to move away – probably in the summer. With the Renters Reform Bill looming etc we have decided that we will sell this property.

When we bought it as tenants in common 12 years ago, a Declaration of Trust was completed giving me 100% beneficial interest, this was sent to HMRC along with Form 17. In 2022 my husband retired and took a more active role in our rental properties. A new Declaration of Trust was completed and sent to HMRC together with Form 17 – giving my husband 100% beneficial interest.

We would like to revoke the declaration of trust and form 17, so that we both have 50% share of the profits when it is sold. My question is, how do we do so? Do we need another declaration of trust and form 17? Form 17 only appears to be for when a split is unequal. Will HMRC question it if we change it again, prior to selling?

Many thanks,

Sally


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Comments

Mark Alexander - Founder of Property118

0:18 AM, 10th April 2024, About 2 months ago

To revoke the Declaration of Trust and Form 17, you would typically need to prepare and execute a new Declaration of Trust reflecting the 50:50 split as tenants in common. This document should clearly outline the revised ownership structure. However, it's advisable to consult with a legal professional to ensure compliance with HMRC regulations and to address any potential questions or concerns they may have regarding the changes.

Sally

20:05 PM, 10th April 2024, About 2 months ago

Reply to the comment left by Mark Alexander - Founder of Property118 at 10/04/2024 - 00:18
Thank you I will contact a tax advisor, How would we notify HMRC, as I thought form 17 was to notify them of a split that is different to the usual 50:50?

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