Buy to let and tax advice please.

justwhat

theartfullodger said:

Gotcha22 said:

Hi

So me and hubby are joint tenants and are just about to let our house.
We are accidentally landlords.

................

Thanks very much, for any advice

Accidental landlords?? So you accidentally signed tenancy agreement plus all the (many..) other documents needed??  Excuse my cynicism but I humbly doubt that.

Done ANY training in how to be a landlord or landlord/tenant law??

Training ! lol 

Biggest part of being an LL now is stopping tenants taking the advantage of the LL. And then there is tax efficiency. 

There is no need for  training. There are many forums and .gov pages that have all the info that is needed. 

And you can always go to an agent/management company.

michelle09

Not a tax advice one- but just because you pay an agent a management fee doesn't stop you being legally responsible.

Our last landlord used an agent. The agent didn't protect our deposit and tried to keep it.

The £6000 penalty would go to the landlord not the agent. 

simpleguy_blr

anselld said:

It is a three step process to convince the tax man ...

   (1)  Move from joint tenants to tenants in common

   (2)  Specify split via deed of trust

   (3)  Submit Form 17 to HMRC to confirm income split in line with ownership.

All three steps must be completed in advance, it cannot be done retrospectively.

You can change the %split at a later date with an updated deed of trust, eg prior to selling. 

Hi, Reviving an old thread, I am trying to DIY the process, so have a few questions on this.

Currently hold a joint tenancy, we are a married couple.

1. Move from joint tenants to tenants in common

-  Do we have to have a written notice that is signed by both? 

-  Is there a standard template that we can get hold of?

-  Then do we fill out Form A (SEV) form and send it to HMRC along with the severance notice original letter?

2. Specify split via a deed of trust

-  We then fill out a declaration of trust form specifying the split

-  Does this document need to be certified or witnessed?

-  Send this completed document to HMRC

3. Submit Form 17 to HMRC to confirm the income split in line with ownership.

Is there any fee to be paid to HMRC for each of these steps?

Have I missed something? 

Any help is much appreciated.

anselld

Given that you will probably need a solicitor to draw up a deed I would ask them to advise on the process for (1) and (2).  It is a deed so it needs to be witnessed.
There are no fees for HMRC, just send the form and the deed.  I can't remember if there is a Land Registry fee, probably is.

simpleguy_blr

Thanks, anselld,

I found this website selling 
https://www.thelegalstop.co.uk/Business/Change-from-Joint-Tenants-to-Tenants-in-Common.html legal documents, I was hoping to use them and DIY the process.

There is another website www.deedoftrust.co.uk and they can do steps 1 and 2 for a fixed price of £150 + £30 towards disbursement charges.  I am inclined to use their service as which leaves me to do step 3 which should be easy,

Solicitors are quoting £250 + VAT for the entire process.

Wondering if anyone has uses deeds of trust earlier and how was their experience. 

Thanks