Declare a beneficial interests in joint property
21/03/2024

The usual tax position for couples who live together with their spouse or civil partners is that property income held in joint names is divided 50:50. This is regardless of the actual ownership structure. However, where there is unequal ownership and the couple want the income taxed on that basis a notification must be sent to HMRC together with proof that the beneficial interests in the property are unequal. This is done using Form 17 - Declare beneficial interests in joint property and income.

A Form 17 declaration can only be made by spouses or civil partners that are living together and own property in unequal shares with income being allocated in proportion to those shares. Couples that are separated or in some other type of union cannot make a Form 17 declaration. The declaration is only valid if both partners agree. If one spouse / partner does not agree then the income will continue to be treated on a 50:50 basis even if the ownership structure is different.

A Form 17 declaration stays in place until there is either a change in the status of the couple i.e., separation or divorce or a change in the ownership structure. If either of these occur the 50:50 income split will reapply.

There are a number of scenarios where a form 17 cannot be used, such as where a married couple or civil partners own property as beneficial joint tenants, for commercial letting of furnished holiday accommodation and for partnership income.

Where property is held in an unequal split, making a form 17 declaration can be beneficial under certain circumstances.


About us  

We provide guidance, support, peace of mind, and assurance to ensure that you are successful in the aspirations you seek.
We are committed to keeping up to date with technical and legislative changes that affect our clients and ensuring we operate our business to meet the ever-changing needs of our clients.

 

Legal

Registered office: 2 Lambseth Street, Eye, Suffolk IP23 7AG

Company number 13781643

Contact us

Welland Orwell Limited
Office 7, 490 Larkshall Road
Highams Park
London
E4 9HH
 
JUMP TO TOP