Declaration of Trust Do it Yourself or Not

Cariad71

Hi,
My husband and I own a house which we rent out (no mortgage). I am going to be made redundant from my job soon so it would be beneficial if I could claim the rent as my income. My husband is a 40% tax payer so it would be better for me to complete the self assessment as I won't earn enough to pay any tax.I have been doing some research (on here and Google) and it seems that I need to:

(1) Sever joint tenancy so that property ownership is Tenants in Common
(2) Sign Declaration of Trust to change ownership percentages. This can be whatever you choose up to 99:1.
(3) Declare the percentage split to HMRC

Steps 1 and 3 seem straightforward. Do I need a solicitor for step 2? I have had a quote for £600 plus vat! Or could I use a template? Thanks in advance.

00ec25

save me writing it again I'll copy my reply on your other thread

as you (appear) to be JT you will need to convert to TIC before you can do anything about declaring unequal shares of the rental income and profit.

there are various guides on .Gov and the Land Registry website that explain how to DIY JT>TIC

https://www.gov.uk/joint-property-ownership/change-from-joint-tenants-to-tenants-in-common

be very careful to stay on the . GOV website for the land registry !!!!! There are lots of near same name websites that charge commercial prices!
https://www.gov.uk/government/organisations/land-registry

once you are TIC only then can you do a Form 17 and yes a declaration of trust must be in writing , you can research its wording online

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


i am not recommending this one as it will charge you! It is simply my first google result, but this may give you a starter for a DoT
https://www.gov.uk/government/publications/income-tax-declaration-of-beneficial-interests-in-joint-property-and-income-17


PS = PRR is retained in full , it is not related to whatever % he owns

Cariad71

Thanks 00ec25. I really appreciate you taking the time to respond. Thanks to your previous advice I'm now confident that I can change from Joint Tenants to Tenants in Common and complete form 17 myself.
I have been trawling the internet for a decent DOT template but can't really find one.
The link that you provided is for form 17 (your last 2 links are the same). I've found a company online 'deedoftrust.co.uk' who will do it for £150 plus vat......but I am still hoping that I can create my own using a decent template.

Thanks again for your help.

00ec25

Cariad71 wrote: »

The link that you provided is for form 17 (your last 2 links are the same). I've found a company online 'deedoftrust.co.uk' who will do it for £150 plus vat......but I am still hoping that I can create my own using a decent template.

Thanks again for your help.

oooops

on a different PC now so same search result won't come up

there comes a time where spending hours searching to save a few £ is counter productive even if this is the MSE site, particularly when talking about DIY law. Don't under any circumstances "do" an oral trust - simply not allowed for actual property ("real estate" to be horrid American)

https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9510

https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9520

https://www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9530

Kedders1

Hi there, I just wondered if you had an update on how it went? I'd like to do one myself, but that company is very reasonably priced compared to others, so I wondered which you opted for.
Thanks;)

Heeezil

Also very curious about using deedoftrust.co.uk, currently looking at £350+ from my solicitor to take two weeks on our declaration of trust!

Heeezil

Considering deedoftrust.co.uk have 0 reviews on trust pilot and no online following.. I'm turned off.

00ec25

Heeezil wrote: »

Considering deedoftrust.co.uk have 0 reviews on trust pilot and no online following.. I'm turned off.

that just goes to show the fallacy of the "modern" internet generation and their faith in "reviews"

Our company has 3 reviews on trustpilot, one of which is vexatiously adverse from a client who thought they should be paying less.

We have no problem whatsoever in obtaining new clients by recommendation from existing ones - who could not give a fig about writing on trust pilot.

For the avoidance of doubt I have no connection at all with "deedoftrust". "Our company" is an accountancy practice, not a legal firm.

akap

Hi, 
I am in similar situation where I own few properties and my wife does not work at this moment. Properties are in my own name. Can I just do Declaration of trust to transfer 100percent of rental income so we can save on tax? Have someone got any example of this document?
regards

Jeremy535897

No. You have to transfer the beneficial interest in the underlying asset. Transfers of income between spouses are ignored for tax purposes.