I solely own five buy-to-let properties. I want to transfer 95% of the benefit from two properties to my civil partner, along with the associated income tax. Can I just create a declaration of trust and send this with form 17 to HMRC? Will this transfer the tax liability to him and not create capital gains tax (CGT) for me from the transfer? I have seen various things on HMRC’s website that indicate I can't do this (something to do with the ‘settlements’ legislation), but lots on the web indicates that I can.  

Arthur Weller replies:  

If you are going to continue to be the sole legal owner of the two properties, you do not need a Form 17. All you need is a valid declaration of trust transferring ownership of 95% of the properties to your partner, as per HMRC’s Trusts, Settlements and Estates manual at TSEM9922. The declaration of trust does not need to be submitted to HMRC unless they ask for it. TCGA 1992, s 58 states that if you are civil partners living together, there will be no CGT for you to pay on this transfer (www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg22000).