Deed of trust or deed of assignment?

Hello Community,

I am a joint tenant with my wife on a rented property (50%/50% share). We lived in the property for six years before renting it out.

As I am a higher rate tax payer and my wife is a base rate tax payer, I am thinking of transferring the beneficial interest to my wife (to make the rental income more tax efficient). I understand that this will mean changing the ownership from “joint tenants” to “tenancy in common” and then submitting Form-17 to HMRC.

However, I have been advised by one solicitor to a use “deed of trust” and by another solicitor to use a “deed of assignment”. I don’t exactly understand the difference. What type of deed the community here has used in such situations?

You need specialist advice as I’m not sure that with joint tenants you can transfer the beneficial interest. I think it has to be tenants in common. However, I am no expert in this area and could be wrong.

Thanks for your reply David. Yes, I will have to sever the joint tenancy to tenancy in common but after that what I am not clear about is whether people opt for deed or trust or deed of assignment?

Its a deed of trust. You then have a limited time in which to notify HMRC of the split using form 17.