Deed of trust or deed of assignment?

Landlord Discussion Legal
1

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?

2

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.

3

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?

4

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