A deed of assignment can be used by property owners to assign their beneficial interest to another party; either a legal owner or a non-legal owner. Where a property is held as joint tenants and the parties want to assign beneficial interest, then they must sever the joint tenancy at the Land Registry and register as tenants in common. Read more - How to sever a Joint Tenancy.

Deed of Assignment Cost

The deed of assignment is available at a Fixed Fee of £240 INC VAT and is drafted within 1 working day of receipt of your intentions.

Frequently Asked Questions

It means an interest in the economic benefit of property - the benefit is the right to live in the property and right of income from it such as rent or capital gain. Equitable interest has the same meaning as beneficial interest, beneficial ownership.
The ownership of land/property in England and Wales is dealt with in the following two ways:

    the legal ownership (which isn't a percentage, it is the names of the parties registered on the legal title at the Land Registry); and
    the economic benefit, which is also commonly referred to as the beneficial ownership/interest (this is a percentage - either a fixed share or a floating share).

The legal ownership is separate from the beneficial ownership and the legal owner or owners are not always the same as the beneficial owner/s. The legal owner is said to hold the beneficial interest in the property on trust for the beneficial owner. The beneficial owner of the land will have a right to the income from the property or a share in it, and a right to the proceeds of sale of the property or part of the proceeds. A beneficial interest in property is an equitable interest.

Legal ownership can be transferred by a transfer of equity or a sale of the property, however the beneficial interest can be transferred via a deed such as a deed of assignment, deed of gift, deed of trust, declaration of no interest. See HMRC guidance notes here: Ownership and income tax: legal background: ownership: legal and beneficial ownership - separation
A deed can only be dated as at the date it is signed and witnessed so it cannot be back dated.
A deed of assignment is a formal legal document that once executed and dated remains enforceable until it is varied using a deed of variation, surrendered using a deed of surrender or the property is sold. If you wish to make a change to the deed then it is more common to surrender the whole deed and then draft a new deed.
Form 17 is a self-assessment tax declaration used by married couples who are joint legal owners to confirm to HMRC that they own a beneficial interest in property/income that isn't equal. Where there is no such declaration there is an assumption the share is equal. You cannot file a Form 17 until you have executed your deed. The process is as follows:

    (if applicable) Sever joint tenancy at Land Registry
    Sign, witness and date deed
    (once confirmed by HMRC) Share income (such as rent) in the new percentage split

Unmarried couples or married couples with only one party on the legal title do not need to file a Form 17. You should speak to a tax specialist to answer any tax questions you may have.
A deed of assignment is used to assign just the beneficial interest in land/property from one party to another. A deed of trust can also be used to do this, however it also includes other clauses such as how to sell the property. For most married couples who simply want to assign their beneficial interest in an investment property a deed of assignment suits their needs. If you would prefer a deed of trust we can help and can quote you for this.

We do not provide tax advice, however can refer you to an accountant, Azets, who can provide a 15 minute consultation for £199 INC VAT and you and discuss questions such as:
  • Is there any stamp duty on a transfer from husband to wife?
  • Is there any capital gains tax when gifting beneficial interest in property?
  • Is there any inheritance tax payable?
  • Transferring a property into company, is there any stamp duty / capital gains tax payable?
  • Transferring a property to a spouse, is there any stamp duty / capital gains tax payable?
Please let us know if you would like to be introduced to Azets Accountants and we will get them to give you a call.
Where there is transfer of an interest in land then Stamp Duty Land Tax (SDLT) will be payable by reference to any chargeable consideration given for it. Chargeable consideration is defined in the Finance Act 2003, Schedule 4, Stamp duty land tax: chargeable consideration and confirmed by HMRC with examples here https://www.gov.uk/hmrc-internal-manuals/stamp-duty-land-tax-manual/sdltm04040. Consideration can be cash changing hands or the taking on of a debt (such as a mortgage or personal loan). To work out the total consideration you add the cash/money being paid for the assignment and the new owner’s share of the existing mortgage/loan debt. If the total consideration exceeds the stamp duty threshold, then stamp duty is payable at the prevailing rate.

You are responsible for declaring and paying any tax to HMRC in relation to this deed and you can file your own paper return - see details here How to send paper returns to HMRC. You can speak to HMRC on 0300 200 3510 (opening times: 8.30am to 5pm, Monday to Friday).
Form SDLT1 is required for transactions in which consideration of more than £40,000 is paid (including the transfer of debt or money changing hands) even if no Stamp Duty Land Tax is actually payable because the consideration is below the threshold.

To file an SDLT declaration to HMRC use this form - How to send paper returns to HMRC

We do not offer this service. You are responsible for reporting the transaction and paying any tax due to HMRC.
The deed itself isn't stored at the Land Registry for future download. What is meant by registering the deed is an application to apply a restriction over the legal title to protect the interest of the beneficial owners and inform a solicitor in the future there is a deed that requires review before making any changes to the legal title. We can apply a restriction over the legal title at the Land Registry however this is not mandatory. Our costs for doing this work are:

  • £260 INC VAT for a Form A Restriction
  • £260 INC VAT for a Form B Restriction
  • £299 INC VAT for a Form A and B Restriction
The deed is still enforceable if you change your home/correspondence address. It is advisable to inform all parties to the deed of your current home address each time you move.
You cannot assign debt so as to remove your liability to pay the debt. For example, if John is the sole legal and beneficial owner of a property and his name is solely on the mortgage, even if he were to state in a deed that he assigns the debt to his wife Jane, John will always be solely liable for repayment of the mortgage.

Our standard deed of assignment doesn't assign debt.
As long as the transfer of the beneficial interest is an outright gift of that element of the property (i.e. it doesn’t need to be an outright gift of the whole property, just the transferred part) then Settlement Legislation does not apply.

You should speak to a tax specialist to advise you on the tax implications on your transfer based on your circumstances.

The rental agreement is drafted in the name/s of the legal owners registered at the Land Registry not the beneficiaries. The legal owners hold the property on trust and manage it on behalf of the beneficial owners.
You need separate witnesses for each party's signature. The witnesses cannot be:
  1. Relatives; or
  2. Anyone a party to the deed
Your signature can be witnessed by:
  1. Friend, neighbour or work colleague who is not a party to the deed
  2. Doctor, solicitor or any other professional who is not a party to the deed
Parachute Law does not currently offer a Deed of Assignment template. Your Deed of Assignment will be drafted by a solicitor.

Deed of Assignment Solicitor

Get in contact today to get straight talking legal advice from a specialist solicitor about a Deed of Assignment.