Form 17 to split income?
10:51 AM, 12th September 2017, 9 years ago
17
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I have two properties in my sole name and I am a 40% tax payer. However, my wife has no income at all.
I am looking to enter her on the deed by transferring her 50% of the equity on these properties.
She will be hit with a tax bill of £3750 on £125,000, but we are ok with this.
Can I then use Form 17 to split the income 90/10 in her favor ?
Many thanks in advance.
Ridvan
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Member Since January 2017 - Comments: 11
8:23 PM, 16th September 2017, About 9 years ago
Reply to the comment left by J C at 16/09/2017 – 19:28
Hi JC
Thanks for your comment
I ll add my spouse as tenancy incommon
But I believe
still need to go through deed of trust / form 17.
Regards
Member Since September 2017 - Comments: 35
11:19 PM, 17th September 2017, About 9 years ago
Reply to the comment left by Ridvan xhakaj at 16/09/2017 – 20:23
My understanding is that once you have setup tenancy in common, nothing else is needed to be done. The benefits of the property in question has already been portion as per tenancy in common documentation.
Member Since January 2011 - Comments: 12217 - Articles: 1412
8:37 AM, 18th September 2017, About 9 years ago
Reply to the comment left by J C at 17/09/2017 – 23:19
Hello Ridvan
Please see below the link to the relevant page on the HMRC website
https://public-online.hmrc.gov.uk/lc/content/xfaforms/profiles/forms.html?contentRoot=repository:///Applications/SpecPersTax_iForms/1.0/17&template=17.xdp
Member Since September 2017 - Comments: 35
1:56 PM, 18th September 2017, About 9 years ago
Hi Mark,
Could we use this form on the HRMC website even if the property was only in one sole name? It does say hold property jointly to start of with.
My understanding is Ridvan now owns those property solely with a mortgage but would like to transfer the beneficial interest to the wife who owns 0% of the property at the moment.
Member Since January 2011 - Comments: 12217 - Articles: 1412
2:36 PM, 18th September 2017, About 9 years ago
Reply to the comment left by J C at 18/09/2017 – 13:56
No, Form 17 is only for jointly owned properties. I was responding specifically to Ridvan’s question.
If you require bespoke advice please book a consultation via our main tax page linked below.
https://www.property118.com/tax/
Member Since June 2018 - Comments: 1
2:06 PM, 14th June 2018, About 8 years ago
I’d like to add to the question…
We have done the declaration of trust and submitted Form 17, there was about 4 weeks between the declaration and form 17 being signed. From which date are we supposed to change the income from a 50/50 split to a 1/99 split? I assume it is valid from the date HMRC have accepted Form 17?
Thanks in advance for any info
Member Since January 2011 - Comments: 12217 - Articles: 1412
2:07 PM, 14th June 2018, About 8 years ago
Reply to the comment left by Dave Saunders at 14/06/2018 – 14:06
It is valid from the date of the Declaration of Trust being signed and witnessed