Changing from tenants in common to joint tenants- questions

checkly

I know that me and my wife need to inform the Land Registry of our intention to change from tenants in common to joint tenants on our BTL flat but have three more questions:

1) Do we also need to tell the mortgage company?

2) Presume that we also need to inform HMRC?

3) Would this take effect immediately (ie. for the 2019/20 tax year) or from next April.

Thanks in advance

pphillips

1) This will depend on the terms of your mortgage contract.
2) You'll only need to tell HMRC if you've paid too much tax or not enough tax.
3) It takes effect immediately.

System

You won’t need to tell your lender.
You’ll tell HMRC when you file your next tax returns, and as pphillips states if applicable for the current year.
It takes effect as soon as the Land Registry make record of it.

00ec25

odd thing to do on a BTL
you do realise the rental profit split will be 50/50, no other alternative on Joint tenant?

getmore4less

Why are you doing this?

Often there is no need as it changes nothing significant with the beneficial interest.

onwards&upwards

I didn’t think this was possible, only the other way around?

G_M

onwards&upwards wrote: »

I didn’t think this was possible, only the other way around?

https://www.gov.uk/joint-property-ownership

checkly

Changing from wife (90%), me (10%) for tax purposes. She now has more income than me, which was not the case previously.

getmore4less

You don't need to go joint tenants to do that.

Don't forget SDLT if there is a mortgage.

00ec25

checkly wrote: »

Changing from wife (90%), me (10%) for tax purposes. She now has more income than me, which was not the case previously.

then as i said, you do not need to convert a TIC to a JT

Your post however is still confusing since if it is already 90/10 in her favour why did you think JT would be beneficial, since, as I said, JT has no other option than 50/50 as JT means there is no actual "share" to be split, you each would own 100% - that is the definition of JT and so for a married couple means 50/50

What you actually need do is create a new declaration of trust and send a new Form 17 to HMRC, along with the DoT, setting out the new split as TIC.
There is no need to involve the Land Registry in that at all, since they are not interested in recording the actual %, merely the fact it is TIC - which will be unchanged

(BTW - if the property was ever "your" (plural) main home before letting do not set it as 0 her / 100 you otherwise that will impact the eventual CGT position.)

getmore4less

Worth a read to help understand how property is owned.

https://www.gov.uk/government/publications/private-trusts-of-land/practice-guide-24-private-trusts-of-land