Tax self assessment on tenants in common

Tax self assessment on tenants in common

9:11 AM, 4th May 2018, About 7 years ago 3

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Dear all, we currently have a tax return self assessment problem here. My husband and I bought a house in tenants in common which he is holding 1% and I am holding 99%. We are not quite sure what documents we need to submit when doing our self-tax assessment.

1. Do we have to submit the Declaration of Trust?
2. Is this the compulsory document?
3. If it is, does anyone have solicitors to recommend?
4. If this is not compulsory, is there any substitute document can be used?

Thank you!

Andy


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Neil Patterson

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9:27 AM, 4th May 2018, About 7 years ago

Hi Andy,

1. No

2. Yes you don't have to submit the Declaration of Trust but it is compulsory to have one.

3. We can help you with this if you wish to book a Tax Consultation with Mark Alexander >> https://www.property118.com/tax/

4. No

5. Joint owners of property need to submit form 17 to HMRC within 3 months of splitting beneficial ownership to inform them of the basis of taxation. If that was not done at the time then HMRC rules are that income, expenses and profit must be declared as 50/50

phoebe

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14:21 PM, 4th May 2018, About 7 years ago

Hi Neil,
Thank you for your responses.
Just to clarify my understanding:
1. So we do need Declaration of Trust to proof 99% holding and 1% holding?
2. As currently, we currently got TR1 form and joint ownership form from our solicitor to confirm the 99% and 1% share holding between me and my husband. Is TR1 form or joint ownership not sufficient enough to prove the split beneficial ownership?
3. On your point 5, do you mean once we got Declaration of Trust, we need to complete Form 17 and submit them together to HMRC?

Many thanks again.
Andy

Mark Alexander - Founder of Property118

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14:37 PM, 4th May 2018, About 7 years ago

Reply to the comment left by phoebe at 04/05/2018 - 14:21
Please see below a link to the relevant page of the HMRC manual on this topic, which answer your questions

https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17

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