Changing the split of your property income for tax purposes
"A complete service for landlords looking to change the recipient of income from their rental properties for tax purposes"
Obtain a Quote
Please provide your details below and one of our team will reply to you by email
Deed of Trust work and Form 17 Filing where required from just £300 per property
Please complete the form letting us know as much about your situation as possible, including any questions you have.
If you have any difficulties with the form you can also email the information to email@example.com
Please note that you do not need to own the property jointly to take advantage of this service. You also do not need to be married or in a civil partnership although there may be additional taxes to be paid if the parties involved are not married or in a civil partnership with each other. If you are married, please see the following information regarding Form 17:
If you own the property jointly with your spouse
The Income Tax Act 2007 (section 836) allows for income from properties that are jointly owned by married couples or civil partners that live together, to be legally split 50/50. This is the default position.
So what does Form 17 do?
You can submit Form 17 if you want to change the split of income to reflect your actual share of ownership, rather than being treated as if you own the property 50/50.
In order to change the split, you’ll need to provide evidence that your beneficial interests are unequal in the form of a declaration or deed.
Here are the facts:
- Form 17 is only used if the beneficial interests are unequal
- Form 17 can be used on any type of property provided it is held ‘jointly’ (excluding beneficial joint tenants)
- Form 17 cannot be used to change the income split back to 50/50
- The evidence of the unequal split e.g. declaration of trust can be years old
- You can do a deed of trust more than once
- The change in beneficial interests does not affect capital gains tax for married couples and civil partnerships though Stamp Duty Land Tax (SDLT) MAY arise if the transaction involves ‘chargeable consideration’ in the form of saying a cash payment or transfer of debt
Form 17 should not be used if:
- Income is from the commercial letting of furnished holiday accommodation
- Income is from a partnership
- Income is from shares in a company
- Property is held as beneficial joint tenants where you are both jointly entitled to the whole of the property and income. (You will need to change the title ownership from Joint Tenants to Tenants in Common in order to declare unequal interest in the property - we will do this for you for no extra charge)
How much does this cost?
Our conveyancing practice can provide a complete Form 17 service for you, including preparing the legal documentation and creating a deed of trust, plus filing the Form 17 paperwork.
Our charge for this is:
- £300 per property, or
- £720 per property with conveyancing for a remortgage included.
If you are a portfolio landlord and a higher-rate tax payer then whilst Form 17 may help if your partner pays a lower rate of tax, it may not be the best option and you should consider taking our free initial assessment.
What happens after I complete the form?
One of our team will reply via email with answers to your questions as soon as possible and within no more than 3 working days. They will request by email from you any further information we need, and provide a quote for your circumstances.
If we don't hear back from you then we may follow up with a call, otherwise all initial correspondence will be by email unless your situation is particularly complex, in which case we will arrange a complimentary initial discovery call with you.
Alternatively you can book in for a Deed of Trust Guidance call (£150+VAT), subject to availability.
Please note that the £300 fee per property does not include professional tax advice or remortgage conveyancing, and only includes the necessary legal work to produce a deed of trust and file Form 17 on your behalf if required.
We can provide some initial guidance free of charge though if you require paid-for tax or estate planning advice please let us know so that we can provide you with a quotation, subject to availabiity.
Any information on this website is for general guidance only. The information may come from multiple sources and is based on our understanding of current taxation, legislation and HM Revenue & Customs practice as at the date stated, all of which are liable to change without notice. Business, Personal Estate, Financial and Tax planning are complicated subjects and no two clients circumstances are the same; the impact on your situation will depend upon your individual circumstances and you should always seek coordinated advice before taking action.
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