Joint Tenants - Declaration of trust and filling in form 17 to HMRC
I currently own a mortgaged rental house as Joint Tenants with my wife and I was looking to make use of her basic rate tax allowance by shifting the beneficial interest in the property to her, possibly via a Declaration of Trust and affording her the largest beneficial interest percentage. Alternatively, I have been reading about changing the property ownership to Tenants in Common and affording her the greatest ownership percentage that way. My limited understanding suggests that the first option (Declaration of Trust) would fulfil what I was seeking to achieve and would be the simplest to invoke. I have also read that by affording her the greatest beneficial interest this would not invoke any negative tax liabilities in the future in the form of additional capital gains payments or indeed any other negative tax implications or liabilities; is this correct? I also believe that I could alter the beneficial interest again in the future should my wife become a higher rate tax payer and me a basic rate tax payer; is this correct? Can anyone advise me how I go about getting a Declaration of Trust drawn up, if this is a sensible thing to do ,and the typical cost for such a document? Is there anyone that could be recommended via this website? What are the beneficial interest percentage ranges that could be used; could I, for example, have the percentage split as 99.9% and 0.1%?
I have also read about the submission of the Form 17 to HMRC. I presume that this is completed once the Declaration of Trust is in place? To alter the beneficial interest percentage in the future is a new Declaration of Trust required? Many thanks in advance for all your assistance.
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