When do you have to lodge the Declaration of Trust of beneficial ownership with HMRC?

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    When do you have to lodge the Declaration of Trust of beneficial ownership with HMRC?

    This is for 2 unrelated parties tenants in common with beneficial ownership (rental and proceeds of sale) 100% to one party. They are selling up soon and want to know if the CGT will only fall on the beneficial party.


    #2
    How did you notify HMRC of your intention to split the income?
    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).

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      #3
      we didn't we just got a dot signed up, we purchased in 2011

      Comment


        #4
        Originally posted by Berkshire45 View Post
        we didn't we just got a dot signed up, we purchased in 2011
        In which case, you're going to have some explaining to do to HMRC.
        Your tax returns to date are (at least technically) wrong and you need to sort that out before the sale.

        HMRC would expect the income (and gain) to be divided equally, unless you tell them otherwise.
        They'll most likely only be unhappy if the outcome means that you have paid less tax than you would have otherwise.

        Assuming the deed of trust is genuine, and you can prove that, it's most likely just going to be a pain to sort out.
        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).

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          #5
          It seems the registration of property at Land Registry is A & B , as tenants in common.

          The DOT ( dated in 2011?) states the beneficial owner ( rental and sales proceeds) is B 100% only. If 100% rental income been reported in tax returns by B since 2011 , you have done nothing wrong and I don't think hmrc will be a great problem.

          There may be problems with the conveyancing solicitor who is required to pay the proceeds from sale into a bank account belonging A+B ( name has to match the name of title holder in Land Registry ) . This does not match the existing dot which states B is 100% beneficiary .

          If you want A&B to claim the capital gains allowance , you will have to terminate the existing DOT and revert to the status at Land Registry. I think you need to discuss the situation with the conveyancing solicitor before you decide to put the property on the market.

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            #6
            Just wanted to clear my confusion, if I have a Deed of Trust (TR1 form) in place with tenant in common which is more than one year old (when purchased the property), can I still inform the HMRC along with Form17 about the unequal split now? And is this necessary before sale of the property? Thanks

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              #7
              You can only use Form 17 within a fairly short time after the deed of trust is signed - I think it's 60 days.
              Otherwise it's invalid.

              So I think you'd need a new deed and Form 17 and you'd need to tell HMRC before sale if you want to use the unequal split for the disposal proceeds.
              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).

              Comment


                #8
                Oh ok, in this instance, I might be able to fill in the TR1 form and Form 17 myself and submit to HMRC. Will I need anyone such as solicitor or accountant to help me with this? Thank you

                Comment


                  #9
                  You don't need a solicitor or an accountant (provided you understand what you're doing).
                  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).

                  Comment


                    #10
                    Originally posted by Echoes View Post
                    Oh ok, in this instance, I might be able to fill in the TR1 form and Form 17 myself and submit to HMRC. Will I need anyone such as solicitor or accountant to help me with this? Thank you
                    When I transferred land into joint names they had some helpful video's with examples and how to complete the forms so check that out.

                    Comment


                      #11
                      Do you have the links I can have a look? Thanks

                      Comment


                        #12
                        you can find the video on youtube.

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                          #13
                          Originally posted by Gordon999 View Post
                          you can find the video on youtube.
                          And also the relevent HMRC page has a link

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