With shared ownership properties, even though property lawyers generally know about taxes associated with transfers and sales of property, I have come across a couple of instances where they have misadvised their clients.

  • when a property is owned by a couple (married or civil partnership), if they change the ownership from 50/50 to another ownership split, then a form (Form 17) must be submitted to HMRC within 60 days of the transfer. This must be sent with evidence of the new split (such as a Declaration of Trust document) otherwise, for tax purposes, the split will remain at 50:50;
  • when a second residential property is bought, there is an extra 3% SDLT due even if one intends to live in it.