Form 17 vs Actual Equity Transfer?

Form 17 vs Actual Equity Transfer?

16:00 PM, 23rd December 2021, About 2 years ago 6

Text Size

Hello, My wife and I hold a rental property with 50:50 share, due to changes in our employment situation I want to transfer 90% of the income from the property to my wife. I understand I could achieve this by submitting a Form 17 and deed – which might cost me £200, worth of fees. Or I could actually change the physical holding in the property to 90:10 – with solicitor costs of about £300.

Note: there would be no stamp duty consideration are there is a negligible mortgage on the property.

So, given that the fee’s involved are not that different, is there an advantage of one method over the other?

Thanks in advance.


Share This Article



8:46 AM, 24th December 2021, About 2 years ago

Steve, you may need paid advice, as you can't simply submit a Form 17 for a property held jointly (i.e. joint tenants). It is necessary to hold the property as tenants in common to be able to declare a non 50:50 share.

The Form 17 must reflect the shares held in the property as defined by the underlying beneficial interests. You cannot just pick 90:10 if the beneficial interests are not the same.

There may be other tax considerations (e.g. IHT).


8:55 AM, 24th December 2021, About 2 years ago

You need to submit a deed of trust (to split the beneficial interest differently to 50/50) along with form 17 to HMRC.

You can get Deed of Trusts templates and do it all yourself - no solicitor need be involved.

You will need approval of a mortgage provider if the property is mortgaged.

Tim Rogers

15:59 PM, 24th December 2021, About 2 years ago

Reply to the comment left by SteveFowkes at 24/12/2021 - 08:55
Thanks for the info Steve, I'm in a similar situation. Pardon a really dumb question, but submit the deed of trust to whom, HMRC, Land Registry, A.N.Other


21:33 PM, 25th December 2021, About 2 years ago

A copy of the Deed of Trust should be lodged at Land Registry, but it will also be necessary to send a copy to HMRC in support of the Form 17.

The Deed of Trust is only effective if ownership is as tenants in common, not simple joint owners.

My understanding of the law (hence why professional advice is so important, not reliance on strangers on an internet forum) is that joint owners by definition own the whole property, albeit the ownership is shared with the other joint owners. A different split is not possible unless held as tenants in common.

If you Google this you will find various articles confirming this point.

Science Student

14:38 PM, 3rd January 2022, About 2 years ago

Reply to the comment left by at 24/12/2021 - 08:46
The property is already held as tenants in common with a 50:50 share.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now