Deed of assignment or Deed of Trust

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    Deed of assignment or Deed of Trust

    I want to submit Form 17 to tell inland revenue to assign all the income of our jointly owned property (tenancy in common) to me as I am currently without an income whereas my husband pays 40% tax. {Name Removed} conveyancing have recommended a Deed of Assignment (for £240) to show I am the sole beneficiary. I can't find much about this online, my original thought was that I'd need a Deed of Trust. Does anyone know if a Deed of Assignment would work in this instance (I cannot find much online about it being used for this purpose)? And whether {Name Removed} Conveyancing are reputable? If both are fine it makes things very straight forward to resolve. Thank you, any feedback much appreciated.

    #2
    A deed of trust sets up a trust. Statute provides that if a property is jointly owned there is always a trust. The solicitor is therefore right that a deed of trust is not required and the way to proceed is with a deed of assignment. Whether the solicitor is otherwise reliable I cannot say, but on this particular point he is spot on.

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      #3
      This forum does not allow firms to be named. but you can get user comments by internet search for "law firm + form 17 comments ".

      You jointly own the property with husband 50:50 , registered tenants in common and now want to use a D of A to change the interest to 100 :1

      If the firm is a member of the Law Society , it should be lawful to pay £240 for the D of A . You can book the cost as "legal consultation expense" against your rental income.

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        #4
        Thank you Lawcruncher - really appreciate that! So it's okay that the property is not owned in unequal share, it's held as tenants in common, I wouldn't need to prove for example that I'd paid 100% of the deposit so deserved 100% of the rent? I'm aware that we'd want to change the share again when we sell (for capital gains purposes) - would that be straight forward or I'd need to have a reason that my husband was now 50% beneficiary. If I can such keep doing D of A to adjust as I need for tax purposes...that seems to good to be true... but I'll certainly take it

        Gordon999 I'll do that search now, thanks for the tip, and great to offset against rental income

        Comment


          #5
          Originally posted by Bumblebee123 View Post
          So it's okay that the property is not owned in unequal share, it's held as tenants in common, I wouldn't need to prove for example that I'd paid 100% of the deposit so deserved 100% of the rent? I'm aware that we'd want to change the share again when we sell (for capital gains purposes) - would that be straight forward or I'd need to have a reason that my husband was now 50% beneficiary. If I can such keep doing D of A to adjust as I need for tax purposes...that seems to good to be true... but I'll certainly take it.
          What is important is what the purchase transfer said. If it said you held as tenants in common in equal shares then that is it for tax purposes. From a conveyancing point of view you can change the percentages as often as you like. Whether the taxman will raise an eyebrow I leave others to comment.

          Going back a few years now I used to do for clients an assignment of the income only for a fixed period. However, I read that the taxman does not accept that now. Whether that is the case, I again leave to others to comment. If it is not, it sounds like that could be what you want.

          Comment


            #6
            This is a hmrc forum for using DOT + form 17 to change the beneficial interest from 50:50 to 99 :1

            To change back to 50% : 50% , you need to submit a new DOT + Form 17.

            https://community.hmrc.gov.uk/forums...4-00155d3bd04f

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