What a declaration proves, writing rules, beneficial ownership, Form A restrictions, HMRC Form 17, tax risks and what happens to a share on death.
This guide is part of ProbateHelp's Wills & Planning guide cluster. Estimated reading time: 10 min.
It records the beneficial interests and any agreed terms within its scope. It does not change the registered legal owners by itself, bind a mortgage lender without consent, decide every later expense or prevent a court from examining validity, variation or other evidence.
Section 53(1)(b) of the Law of Property Act 1925 requires a land trust to be manifested and proved by signed writing. A deed may be appropriate and other transactions can require deed formalities, but it is inaccurate to say every valid declaration can only exist as a witnessed deed.
No. A Form A restriction does not state the beneficial shares. Its main purpose is to prevent registration of a disposition by a sole proprietor where capital money arises unless a court authorises it, supporting overreaching through two trustees.
No. It is not a general consent restriction and it does not stop two trustees from overreaching beneficial interests into the sale proceeds. A different restriction may be needed for a specific consent arrangement, and Land Registry rules must be followed.
It is for spouses or civil partners living together who jointly own income-producing property, are beneficially entitled in unequal shares and want income taxed in those actual shares instead of the normal equal split. HMRC must receive the declaration within 60 days with evidence.
The beneficial share does not pass by survivorship merely because the legal title passes to the surviving registered proprietor. It is dealt with under the deceased's will or intestacy, subject to the declaration, mortgage, tax and any dispute.