Landlord Tax Planning Joint Property

From the point of view of form 17 married couples who own property by default by tax law are taxed 50:50 regardless of the underlying beneficial ownerships however this doesn’t apply to property held within a business partnership.

If it is more tax efficient then the profits can be divided appropriately to that beneficial ownership. This can only be achieved if both parties jointly sign the form. When HMRC has been notified then the new divisions will remain unless one of the spouses dies, stops living together or beneficial interests in the property change. The Form 17 must be submitted within 60 days of the date of declaration, this time limit cannot be extended and the form can’t be backdated.

A declaration of trust must be submitted with the form 17 to HMRC. A declaration of trust is a formal document which records how much each individual owns and under what terms. When the divisions of the property have changed and signed by all parties they are then recorded on the property register at the Land Registry. To obtain a declaration of trust it costs in the region of £300 from a solicitor.