Property held jointly by married couples or civil partners: form 17 rule - when a declaration stops
The split of income for tax purposes produced by a valid declaration goes on running for all later years without any further action until one of the following events happens
- one spouse or civil partner dies
- the couple separate permanently
- the couple divorce or the civil partnership is dissolved (where the couple have not already separated permanently)
- the beneficial interest of either spouse or civil partner in either the property or the income it produces changes; for example, this can happen if one spouse or civil partner transfers any part of his/her beneficial interest to the other or to a third party.
The couple cannot simply choose to end the split of income which results from a declaration; it goes on running until one of the four events listed above occurs. But even the smallest change of interest (4 above) stops the declaration running. The standard 50/50 rule then applies again unless the couple make a fresh declaration.