Form 17 required after transfer of equity?

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Form 17 required after transfer of equity?

Question:

I brought a second property several years ago in my own name, which is now mortgage-free. My family and I have moved into the property while we search for a new primary home (maybe 6-12 months). I am in the process of arranging a transfer of equity to my wife of 75% and retaining 25% myself. This is the optimal percentage split taking into account income/capital gains when it comes to selling. My question is: do I need to submit a Form 17 to HMRC just in case I decide to rent in the future? I had read somewhere you have 60 days to submit Form 17 after the transfer. I want to ensure I get this right as if we rent I want 75% to go to my wife for income tax reasons. Or can I submit the form 17 if/when I decide to rent it out?

Arthur Weller replies: 
See HMRC’s Trusts, Settlements and Estates manual at www.gov.uk/hmrc-internal-manuals/trusts-settlements-and-estates-manual/tsem9862. You should submit the Form 17 now, and not wait until you rent out. I am assuming the property will be in joint names because if it is only in your name the Form 17 rule doesn't apply (see TSEM9810).
 

I brought a second property several years ago in my own name, which is now mortgage-free. My family and I have moved into the property while we search for a new primary home (maybe 6-12 months). I am in the process of arranging a transfer of

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This question was first printed in Property Tax Insider in March 2020.