What is form 17?

If you own a property with your spouse or civil partner, and would like to change the split of your incomes for tax purposes, a form 17 should be completed.

Normally, a jointly-owned property will be split between spouses/civil partners on a 50:50 basis, but a form 17 can be used to inform HM Revenue & Customs of your intention to declare otherwise.

The form applies to both UK resident and non-resident landlords who are living overseas.

When should I fill in a form 17?

When a property is held in joint names, the owners are taxed according to beneficial ownership, and by default, this is set at 50:50 – irrespective of who owns which portion. However, an exception occurs when couples who are married or in a civil partnership jointly own a property.

If you live with a spouse or civil partner and have income from property you jointly own, you can change the split of income to your actual share of ownership, and therefore the proportionate tax you pay on as a result of the property’s profits.

If, for example, there is an 80:20 ownership, you’ll need to provide evidence that your beneficial interests in the property are unequal (via a declaration or deed), and complete a Form 17 accordingly.

In summary, a form 17 should be completed if you own a property in unequal shares, you are entitled to the income arising in proportion of those shares, and you wish to inform HMRC that you wish to be taxed on that basis.

When submitting the form 17, you must declare your beneficial interest in a jointly held property, and the profits generated from that property.

How can Tax Rebate Services help?

Tax Rebate Services has over 15 years’ experience in helping Landlords complete their Self Assessment tax returns and other tax forms. This includes rental income from jointly owned properties between spouses and civil partners, to ensure that both you and your partner are as tax efficient as possible.