HMRC FORM 17 PDF

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You can use this form to declare a beneficial interest if you hold property jointly and: Page 1. HMRC 06/ About you. Your surname or family name. Declare beneficial interests in joint property and income (form 17). Ref: Form 17 tisidelaso.gq Get a Deed of Trust to work with your Form 17 Income Tax Declaration Without this form, HMRC assumes that any income generated from the jointly owned.


Hmrc Form 17 Pdf

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Again it is a misconception that all that has to be done is to submit a form 17 to HMRC and the profit is taxed at a different split to the default. Hello,I urgently need to complete a Form 17 for a client - but the link on . tisidelaso.gq*/tisidelaso.gq A form 17 election cannot be made (i.e. the property income cannot be split other than in equal shares) if the couple own the property as 'joint tenants'. HMRC.

This effectively voids the Form 17, since it no longer states the correct position. Conclusion The Form 17 declaration is a relatively simple device to exploit a choice deliberately available to spouses and civil partners.

There will be many situations where it would be beneficial to retain the assumed income split, particularly where it is the spouse in the higher income tax band who actually has the greater beneficial interest in the property in question. This article was first printed in Property Tax Insider in November You can cancel whenever you want. If you are on an annual subscription and cancel mid-way through a year a partial refund will be issued.

To access this additional newsletter you need to upgrade your subscription. Please email for details on how to upgrade. Form 17 declarations should be considered in the light of the evidence submitted. How couple make declaration A declaration can be accepted only if made on form The taxpayers can download a copy from the HMRC website. The form must be signed and dated by both spouses or both civil partners, but can be sent to the tax office of either spouse or civil partner.

The declaration sets out the property and income they want the declaration to cover and states the interest each spouse or civil partner holds in each item of property the income produced by each item.

Property not covered by declaration A declaration applies only to the asset or assets shown on it. Other property, including any assets bought later, is not covered. If they wish they may make a fresh declaration to reflect the new split.

Form 17 Income Tax declaration of beneficial interest in joint property and income

But it must reflect the actual position. No limit on number of declarations There is no limit on the number of declarations. Couples may make numerous declarations in a year if they are constantly downloading or selling investments in their joint names and holding them in unequal shares. In practice couples with a big turnover of assets may prefer to avoid joint holdings. However, the declarations must reflect the actual position. When declaration takes effect: normal case Income from property included in the declaration is split in the new way from the date of the declaration which is the date the declaration was signed by the last spouse or civil partner to sign provided the notice of declaration reaches the Inspector within 60 days of the date it was signed.

For example, the husband signs on 10 June , and the wife signs on 20 June ; the declaration applies to income that arises on and after 20 June provided the declaration reaches the Inspector within 60 days of 20 June A declaration that is late is invalid; it has no effect at all.

The couple must make a further declaration and send it to the Inspector within the 60 day time limit if they want income to be split on the basis of actual entitlement.

Only income that arises after the date of the declaration is covered. Strict time limit The declaration must be given to the Inspector within 60 days of the date of the declaration. The declaration time limit of 60 days must be enforced strictly. There is no power to extend it. Since difficulties might arise only many years later — perhaps when the couple split up — you must make sure the notice of declaration is valid at the outset. The couple cannot simply choose to end the split of income which results from a declaration; it goes on running until one of the four events listed above occurs.

But even the smallest change of interest 4 above stops the declaration running. Death, separation and divorce or dissolution After death, permanent separation or divorce or dissolution the income is split in the normal way; that is, the person who is beneficially entitled to the income is taxable on it. That is because the declaration is valid only if received within 60 days of the couple signing it. Preliminary checks signatures and dates — check that the couple have both signed and dated the declaration; if not send it back with a letter asking them both to do so time limit -check that the declaration is within the time limit.

That confirms that the time limit has been met. Send a letter explaining that the declaration is not valid, and send a fresh form 17 inviting the couple to make another declaration if they wish percentages — check for each item of property separately, that the percentage share that a spouse or civil partner has claimed in the income box for that item is the same as the percentage share he or she has claimed in the property box for that item.

If they are not, write to the couple telling them that the declaration cannot be accepted for that item and explain why. Evidence checks Check that the couple have submitted adequate evidence of their claim that the property is held jointly in unequal shares. If they have not, you may need to ask them to provide further evidence. A notice of declaration may not reach you within the 60 day time limit but the couple claim that it was posted in time.

The onus is therefore on HMRC to prove that the notice was not given in time if both spouses or civil partners say it was sent by ordinary post within a reasonable time before the end of the 60 day period. Accordingly you should accept that the notice was given in time unless there is very good reason for doubt, but ask the couple to give you another copy of the declaration if the original does not arrive.

A conveyance after needs to be registered with the Land Registry.

The Land Registry documents provide evidence of who holds the legal title. In cases where the ownership is in dispute, the Land Registry entry should be examined to ascertain the legal owner s.

Express Trusts For someone to claim a beneficial interest in land and buildings, there must be something in writing to prove it. So the declaration itself could be oral provided there is evidence in writing signed by the settlor that the declaration is made.

Joint Ownership A maximum of four persons can be registered as legal owners in the register of land S34 Trustee Act When property is held jointly, there is a presumption in law that the property is held as joint tenants. If this is complied with, you can accept what it says. The transfer will be valid whether or not this part of the form is completed.

Taxation of Rental Income For the taxation of rental income from property held jointly by married couples or civil partners, see the sections above. Otherwise, the following applies. Profits from UK and foreign land and buildings are treated for tax purposes as arising from a business PIM Legal owner not as claimed A flat is rented out and the rents are paid to A. A claims that the rent from the flat should be taxed half and half on A and her husband B. A says she has transferred the flat into joint names with B.

But the Land Registry record clearly shows that A is the sole owner. It is also established that she was the sole borrower of the loan from the building society. There is no evidence that the beneficial ownership of the property or the income is held to any extent by B. Joint ownership is not in point here. A is taxable on all the income. Valid declaration of trust A house is held in the sole name of A, and the Land Registry documents confirm this. However, if the daughter was a minor the Settlements legislation may apply so that A would remain taxable on the rents until the daughter reached Settlements legislation A house is held in the sole name of A, and the Land Registry documents confirm this.

The house is rented out and the rents are paid to A. A claims that all the rent is taxable on his wife B.

But even if the trust deed does validly transfer the right to all of the income from A to B, that would constitute a settlement of the right to income, because A would still retain an interest in the property itself. Both contributions are documented. The land registry documents show that the house is held in the name of A alone.

The house is rented out. A is the legal owner, but says there is a resulting trust. The Land Registry documents show that the house is held in the name of A alone. All the rents are taxable on A. Sole name — no resulting trust A has held a flat in his sole name for years. It is rented out. A claims that his new wife B, a non-taxpayer, is the beneficial owner of the flat and is consequently taxable on all the rental income, using up personal allowances etc.

A says that because B has paid some repair bills on the flat and has redecorated it, there is a resulting trust to B and she is the beneficial owner of the property, and should be taxable on the income. However, to establish a resulting trust there must be a direct contribution to the download of the property. There is no evidence that B contributed to the download of the flat — in fact A did not even know her at the time of the download.

Paying bills and redecorating do not constitute direct contributions to the download price of land and buildings. Consequently, A remains beneficial owner of the flat and the income, and is taxable on all the rent. Sole name — taxpayer claims constructive trust A downloadd a house as an investment. The house was registered in his name alone and he provided the download money by way of a mortgage. His wife B does not work and has no other income.

A is a higher rate taxpayer. As is usual in these income tax cases, there is no conflict between the taxpayers, but HMRC may disagree with them.

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Income is attributable to them on the basis of their entitlement. A couple do not have to opt for a different split. A couple can make a different choice for each asset. The couple do not have to make a declaration as soon as they get a new asset.

A form 17 declaration can be made only if the individuals are beneficially entitled to the income in unequal shares. Married couples and civil partners do not have a general option to have income taxed in any way they like. A declaration cannot be made where a husband and wife or civil partners own property as beneficial joint tenants.

In these circumstances the couple do not own the property in shares at all, but are entitled jointly to the whole of both the property and the income. This is distinct from the situation where the husband and wife or civil partners own property as beneficial tenants in common where they are each entitled to specific shares in the property and the income arising. The couple should submit evidence of beneficial ownership along with the declaration. This applies to all types of property.

Form 17 declarations should be considered in the light of the evidence submitted. A declaration can be accepted only if made on form The taxpayers can download a copy from the HMRC website.

The form must be signed and dated by both spouses or both civil partners, but can be sent to the tax office of either spouse or civil partner. The declaration sets out the property and income they want the declaration to cover and states the interest each spouse or civil partner holds in.

A declaration applies only to the asset or assets shown on it. Other property, including any assets bought later, is not covered. If they wish they may make a fresh declaration to reflect the new split. But it must reflect the actual position.

There is no limit on the number of declarations. Any number of declarations may be made to cover. Couples may make numerous declarations in a year if they are constantly downloading or selling investments in their joint names and holding them in unequal shares. In practice couples with a big turnover of assets may prefer to avoid joint holdings.

Income from property included in the declaration is split in the new way from the date of the declaration which is the date the declaration was signed by the last spouse or civil partner to sign provided the notice of declaration reaches the Inspector within 60 days of the date it was signed.

For example, the husband signs on 10 June , and the wife signs on 20 June ; the declaration applies to income that arises on and after 20 June provided the declaration reaches the Inspector within 60 days of 20 June A declaration that is late is invalid; it has no effect at all. The couple must make a further declaration and send it to the Inspector within the 60 day time limit if they want income to be split on the basis of actual entitlement.

Only income that arises after the date of the declaration is covered. The declaration must be given to the Inspector within 60 days of the date of the declaration. The declaration time limit of 60 days must be enforced strictly. There is no power to extend it. Since difficulties might arise only many years later — perhaps when the couple split up — you must make sure the notice of declaration is valid at the outset. The split of income for tax purposes produced by a valid declaration goes on running for all later years without any further action until one of the following events happens.

The couple cannot simply choose to end the split of income which results from a declaration; it goes on running until one of the four events listed above occurs. But even the smallest change of interest 4 above stops the declaration running.

After death, permanent separation or divorce or dissolution the income is split in the normal way; that is, the person who is beneficially entitled to the income is taxable on it.

Where a married couple or civil partners continue to live together but their beneficial interests change there are three possibilities. HMRC stamp the form with the date of receipt in the official use box as soon as it is received.

That is because the declaration is valid only if received within 60 days of the couple signing it. The couple is expected to allow sufficient time for the declaration to reach you by post. A notice of declaration may not reach you within the 60 day time limit but the couple claim that it was posted in time. The position is this: The onus is therefore on HMRC to prove that the notice was not given in time if both spouses or civil partners say it was sent by ordinary post within a reasonable time before the end of the 60 day period.

Section 52 Law of Property Act LPA provides that any transfer of legal title conveyance of land is void unless made by deed. A conveyance after needs to be registered with the Land Registry. The Land Registry documents provide evidence of who holds the legal title.

There is unlikely to be any dispute about the registered legal owners. In cases where the ownership is in dispute, the Land Registry entry should be examined to ascertain the legal owner s. For someone to claim a beneficial interest in land and buildings, there must be something in writing to prove it. Section 53 1 b of the Law of Property Act sets out the requirements for the creation of an express trust or interest in land and buildings:.

So the declaration itself could be oral provided there is evidence in writing signed by the settlor that the declaration is made. A maximum of four persons can be registered as legal owners in the register of land S34 Trustee Act When property is held jointly, there is a presumption in law that the property is held as joint tenants. If this is complied with, you can accept what it says. The transfer will be valid whether or not this part of the form is completed.

For the taxation of rental income from property held jointly by married couples or civil partners, see the sections above. Otherwise, the following applies.

Profits from UK and foreign land and buildings are treated for tax purposes as arising from a business PIM A flat is rented out and the rents are paid to A.

A claims that the rent from the flat should be taxed half and half on A and her husband B. A says she has transferred the flat into joint names with B.

But the Land Registry record clearly shows that A is the sole owner. It is also established that she was the sole borrower of the loan from the building society. There is no evidence that the beneficial ownership of the property or the income is held to any extent by B.

Joint ownership is not in point here. A house is held in the sole name of A, and the Land Registry documents confirm this. However, if the daughter was a minor the Settlements legislation may apply so that A would remain taxable on the rents until the daughter reached The house is rented out and the rents are paid to A.

A claims that all the rent is taxable on his wife B. But even if the trust deed does validly transfer the right to all of the income from A to B, that would constitute a settlement of the right to income, because A would still retain an interest in the property itself. Both contributions are documented. The land registry documents show that the house is held in the name of A alone. The house is rented out. The Land Registry documents show that the house is held in the name of A alone.

A has held a flat in his sole name for years.

Jointly owned property and form 17

It is rented out. A claims that his new wife B, a non-taxpayer, is the beneficial owner of the flat and is consequently taxable on all the rental income, using up personal allowances etc.

A says that because B has paid some repair bills on the flat and has redecorated it, there is a resulting trust to B and she is the beneficial owner of the property, and should be taxable on the income. However, to establish a resulting trust there must be a direct contribution to the download of the property. There is no evidence that B contributed to the download of the flat — in fact A did not even know her at the time of the download.

Paying bills and redecorating do not constitute direct contributions to the download price of land and buildings. Consequently, A remains beneficial owner of the flat and the income, and is taxable on all the rent. A downloadd a house as an investment. The house was registered in his name alone and he provided the download money by way of a mortgage.

His wife B does not work and has no other income. A is a higher rate taxpayer. As is usual in these income tax cases, there is no conflict between the taxpayers, but HMRC may disagree with them.

A says that S53 2 Law of Property Act applies. The requirement for a trust in respect of land and buildings to be in writing is removed where there is a resulting, implied or constructive trust. The house is in the sole name of A. He is the sole legal owner, and presumably the sole beneficial owner, unless there is evidence to the contrary. In the case of land and buildings, S53 Law of Property Act applies.

For B to have a beneficial interest there must be a resulting or constructive trust in her favour. HMRC does not agree that a constructive trust arises, because no evidence exists of any agreement made at the time of download to share the beneficial ownership in the property.

Nor has a common intention to share ownership been inferred from the conduct of the parties over the whole course of dealing with the property. There is no detriment because B has not given anything away or significantly changed her position. A and B are civil partners.It is also established that she was the sole borrower of the loan from the building society.

The form 17 rule therefore applies if the individuals are beneficially entitled to the income in unequal shares s 1 a , such as The house is rented out and the rents are paid to A. Ranjan Bhattarcharya.

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Owning a property in joint names can be used as a tax planning tool as each joint owner can use the annual capital gain tax allowance when the property is sold.

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