Declaration of Trust a step by step process

  • Filter
  • Time
  • Show
Clear All
new posts

    Declaration of Trust a step by step process

    I am trying to clean my mind regarding to how to do Declaration of Trust.

    Say me and my wife owns a property 50:50 at the present and wants to change to 1:99

    I think this is what we need to do if we want to DIY it:

    1. download a Declaration of Trust.template and fill in with all the needed details.
    2. Inform land registry by filling a form, but I am not 100% sure which form should we use, is it TP1, TR1, AR1 or RX3 and ST5 as someone suggested in some other places?
    3. infrom HMRC with form 17.

    Also is there a time limit on when I need should send the forms to land registry? I know that form 17 has a six month time limit. Does the same apply for land registry forms?

    Many Thanks

    Actually, I just found this link:

    Seems I don't even need any land register form at all.


      If you don't know what you are doing , you should consult a conveyancing solicitor. Its not an area for DIY.


        I actually think if I can get this right for once myself, I will know how to do this in future without paying a solicitor.

        There are templates I can buy from Internet to setup declaration of trust, so must be possible to do whole thing myself.


          How do you own the property at present?
          Joint tenants or tenants in common?
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


            Joint tenants, thanks


              I think I worked it out now.
              For simple cases (changing from joint tenants to tenants in common), I should
              1. fill in form SEV
              2. fill in declaration of trust document correctly.
              3. Send both doc to land registry
              4. fill in form 17 and send to hmrc

              Think it is all I need to do.


                Is there a mortgage on the property?


                  yes, there is a mortgage, but I think it doesn't really matter as both name will still on deed (at least this is what I was told when I talked to some solicitors).


                    See the link below for further things that you need to consider.



                      I just looked my copy of title, it says these:

                      No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered by an order of the court.

                      No disposition of the registered estate by the proprietor of the registered estate is to be registered without a written consent signed by the proprietor for the time being of the charge dated xxxx in favor of bank of xxxx referred in the charges register.

                      Frankly I don't really understand what above sentences really mean. At the moment, my wife and I are joint tenants, do above sentences mean we have to consult the bank before creating trust deed?

                      Many thanks


                        If you don't know what those terms mean, you probably shouldn't be creating your own deed of trust.

                        You are absolutely right that you can do it yourself.
                        And deeds of trust are simple, and won't cause any issue if things go to plan - because you and your wife are the only people affected by it.

                        The issue is what happens if something doesn't go as expected.
                        You separate or one of you dies.

                        There are other things that might be affected - wills are usually an issue, and some mortgage terms don't allow a change in beneficial ownership (rather than title) and that needs to be checked out.

                        It's simply not something I would take any chances with - property is very high value and has consequently high costs of getting things wrong.
                        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
                        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).


                          you are very right, I am leaning to get this done by a professional now


                            hi,if this helps anyone (at least people like me who don't know much), I contacted the bank and they said that I don't need to consult them if just to do a tenants in common.

                            Also they don't even have a problem to remove a name from buy to let mortgage, you don't need to pay any charges, but you do need to pay a solicitor that arranged by the bank (for my bank is like 250+vat).

                            So it is not that scary as I thought.


                              are you trying to change the ownership of the property or to simply allocate profits in a tax efficient manner ?


                              Latest Activity


                              • Self Assessment
                                I’m just wondering how difficult it is to actually do my own self assessment. Does anyone have a quick explanation of what it actually entails?

                                I have two properties, no mortgages, and 2017-18 will be my second tax year in having them.

                                I hired an accountant for 2016-17 on...
                                11-04-2018, 07:44 AM
                              • Reply to Self Assessment
                                I don’t, but thank you for bringing up.
                                I’m just your average chap. Nothing extravagant to put through the books or claim. Pretty straight forward....
                                21-04-2018, 19:15 PM
                              • Tax return calculations
                                Good evening everyone. I have a question regarding the calculation on my tax return

                                Ive submitted all the relevant information and I’m on the page that shows my calculations. I have the figure due for tax year 2017-18 but I also have an additional amount showing and it’s the ‘first...
                                20-04-2018, 21:03 PM
                              • Reply to Tax return calculations
                                If you had taxable earned income, they would still collect it close to when the income arose, as they would adjust your tax code to make you pay more tax on your salary.

                                The general policy with tax has always been to try and collect it in a way that makes you approximately up to date all...
                                21-04-2018, 10:09 AM
                              • Additional 3% Stamp Duty with Inherited Home in the Equation?
                                My client is about to buy a property on his name
                                I manage one of his properties (a house that he inherited from his parents - he owns 25% share of it, his three other siblings own 25% each)
                                Will he have to pay the additional 3% stamp duty tax in this situation?...
                                21-04-2018, 06:52 AM
                              • Reply to Additional 3% Stamp Duty with Inherited Home in the Equation?
                                If the share is greater than £40000 then the premium does unfortunately become payable on the new acquisition irrespective of whether it is for his own occupation or another BtL.

                                It might be worth mentioning that if the share of the rental income is to be used towards the affordability...
                                21-04-2018, 08:31 AM
                              • Reply to Additional 3% Stamp Duty with Inherited Home in the Equation?
                                Yes of course (presuming the value of the share is over the value threshold). This is a tax that punishes the less-wealthy, punishes those without the financial stability of owing their own home, punishes those who are not geographically settled, punishes marriage, and punishes people for unknowingly...
                                21-04-2018, 07:48 AM
                              • Reply to Tax return calculations
                                The taxman is trying to speed up collection of tax in current year by assessing your rental income for this year is roughly same as last year and making the BTL landlords pay tax sooner.
                                21-04-2018, 06:48 AM
                              • Reply to Tax return calculations
                                It is rule based. It depends how much tax you owe, and the proportion of your total tax that is collected via PAYE
                                (typically if you owe less than 1000 in tax, or more than 80% is via PAYE the rule will not trigger I think).
                                20-04-2018, 22:50 PM
                              • Reply to Tax return calculations
                                Many thanks for your reply.

                                I’ve never had this on previous tax returns for property (I’ve filled around 7 years worth).


                                20-04-2018, 22:24 PM