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A woman sat atop some books typing on a laptop with a bigger laptop, a tax form, and a calculator laid next to her. SAM Conveyancing explains how a declaration of no interest in property works

Declaration of No Interest in Property

Last Updated: 10/07/2025
7,871
10 min read

Property ownership isn't always as simple as whose name is on the title deeds. For many, arrangements involving mortgages, family support, or tax planning mean that legal ownership doesn't always reflect who truly benefits financially from a property.

A Declaration of No Interest in property is a legal document that clarifies this difference, confirming that a person listed on the legal title has no beneficial ownership or financial stake.

This means they have no right to income from the property, proceeds from its sale, or any other benefits associated with ownership.

While joint property owners typically share beneficial interests, there are situations where a declaration of no interest is necessary.

For example, during divorce or separation proceedings, a court may order a declaration of no interest to keep both parties on the property's legal title and mortgage for practical reasons (such as maintaining mortgage approval) until a future date, even if one party has no financial stake in the property.



When is a Declaration of No Interest used?

A Declaration of No Interest in property is a versatile legal tool used to clarify beneficial ownership, even when someone's name remains on the legal title.

Divorce or Separation

During divorce or separation proceedings, a court may order a Declaration of No Interest to clarify the financial interest in a jointly owned property.

This is often a temporary but vital measure. For instance, it can allow both parties to remain on the property's legal title and mortgage for practical reasons (such as maintaining mortgage approval) until a future date, even if one party has no financial stake in the property. This ensures stability while a final financial settlement is being negotiated.

Stamp Duty Land Tax (SDLT)

A Declaration of No Interest is particularly relevant for Stamp Duty Land Tax (SDLT) planning, especially in situations where multiple people are purchasing a property, but not all of them will have a beneficial ownership stake.

This is crucial in scenarios like Joint Borrower Sole Proprietor (JBSP) mortgages, where parents assist their children with property purchases.

By formally declaring no beneficial interest, the parent (who may already own property) can help ensure their child qualifies for first-time buyer relief or avoids higher rates of SDLT on additional dwellings, as only the beneficial owner's circumstances are considered for SDLT purposes.

Tax Planning for Married Couples

For married couples, a Declaration of No Interest (often implemented via a Deed of Trust) can be valuable for income tax planning.

It allows couples to formally declare an unequal beneficial interest in a jointly owned property, which can be beneficial for optimising individual income tax liabilities, especially if one spouse is in a lower tax bracket.

This arrangement, often used in conjunction with HMRC Form 17, enables them to split rental income for tax purposes in a way that reduces their overall tax burden.

Protection for Unmarried Couples

If an unmarried couple lives together in a property solely owned by one partner, a Declaration of No Interest can provide essential protection.

Unlike married couples, unmarried partners do not have the same automatic legal protections regarding property.

This document can prevent future claims of beneficial interest by the non-owning partner based on their contributions (financial or otherwise), thereby formalising the arrangement and preventing costly disputes if the relationship ends.

Business Partnerships and Investments

In certain business partnerships or investment scenarios, one party might contribute funds towards a property purchase without intending to become a beneficial owner.

A Declaration of No Interest can formalise this arrangement, clearly defining that the contributing party has no beneficial interest in the property, thus protecting all parties' intentions and preventing future misunderstandings.


Get a Deed of Trust - Protect Your Interest

Protect your interest in a property and confirm how to sell. Drafted by a solicitor.

The first draft is within 1 to 2 working days* and includes:

  • Deposit paid.
  • The percentage ownership of each party.
  • How to share expenses like the mortgage and bills.
  • Share of property income - rent or gain on sale.
  • How to sell the property.
  • How the property is divided in the event of separation, divorce, or death.


The difference between a legal owner and a beneficial owner

While often held by the same person, these two concepts are distinct, and clarifying them is at the core of this legal document.

Legal Ownership

Legal ownership refers to the individual(s) or entity registered as the owner of the property at the Land Registry. These are the names that appear on the official title deeds.

Legal owners are responsible for the property's administration, such as dealing with mortgages, selling the property, or managing legal formalities. They hold the "bare legal title."

Beneficial Ownership

Beneficial ownership, on the other hand, refers to who truly benefits financially from the property. This includes the right to receive rental income, the proceeds from a sale, or any other financial gains or losses associated with the property. The beneficial owner is the one who has the "equity" or "interest" in the property.

A Declaration of No Interest in Property specifically confirms that someone listed as a legal owner has no right to these benefits, meaning they have no beneficial interest in the property.

This is particularly relevant in situations like a parent being listed as a legal owner on their child's mortgage solely to help them get approved for a loan, without intending to live in the property or receive any income from it.

By signing this declaration, the parent legally confirms they have no beneficial ownership, meaning their financial stake is limited to their role as a guarantor for the mortgage, not as an owner benefiting from the property itself.

If you are planning on transferring beneficial interest to your married partner, these articles are essential reads:



SDLT and Declarations of No Interest

With rising property prices and evolving family structures, it's increasingly common for people to buy property jointly with parents or unmarried partners. However, this can create Stamp Duty Land Tax (SDLT) implications, especially if any of the purchasers already own another property. A Declaration of No Interest is vital in these situations.

The key issue is that if any of the joint purchasers already own or have previously owned another property, they may be subject to higher rates of SDLT or may not qualify for first-time buyer relief.

First-Time Buyer Relief and SDLT

HMRC rules state that to qualify for first-time buyer relief, all purchasers must genuinely be first-time buyers. This means that if even one legal purchaser has previously owned a property, the relief cannot be claimed.

However, a declaration of no interest can be used in Joint Borrower Sole Proprietor (JBSP) mortgages to ensure that parents (who may already own property and are only on the mortgage for affordability) do not count as beneficial owners for SDLT purposes.

This allows the child, if they are a genuine first-time buyer and the sole beneficial owner, to claim the relief. The declaration provides the necessary evidence to HMRC that the parent has no beneficial interest.

Example: John and his parents are buying a house. John will live in the house and be the sole beneficial owner, but his parents are helping with the mortgage. By signing a declaration of no interest, his parents confirm they have no beneficial ownership stake, which may allow John to claim first-time buyer relief (if applicable) and avoid higher SDLT rates.

Higher Rates for Additional Dwellings

If any of the joint purchasers already own another residential property, they will be liable for the higher rates of SDLT (an additional 3% surcharge on top of the standard rates). This increases the cost of buying an investment property or a second home.

However, if one of the legal purchasers is only helping with the mortgage and has no beneficial interest in the property, a declaration of no interest can prevent these higher rates from applying.

This is particularly useful where joint purchasers aren't looking to benefit financially from the transaction, but rather to help their child or partner get onto the property ladder by leveraging their joint salaries for the mortgage.

HMRC guidance (SDLTM09764) confirms this, stating that a purchaser with absolutely no beneficial interest will not be treated as a joint purchaser for SDLT purposes, provided this is evidenced in writing through a declaration of trust within a Deed of Trust or a Declaration of No Interest.


Do you need a Declaration of No Interest? Our expert solicitors can help

Our specialist solicitors have experience drafting legally sound and HMRC-compliant declarations of no interest for various purposes, including Stamp Duty Land Tax (SDLT), income tax, and divorce proceedings.

We understand the importance of speed and efficiency, so we aim to have a draft within one to two working days for just £275 INC VAT.




Declaration of No Interest in divorce or proceedings

During divorce or separation proceedings, a court may issue an order stipulating that the family home remains in the joint legal names of both parties, while declaring that one party holds 100% of the beneficial interest.

This is often a strategic decision to maintain stability for any children involved or to facilitate ongoing mortgage arrangements until a final financial settlement is reached or a future transfer of legal title occurs.

The court order will typically include a formal declaration of no interest, explicitly confirming that the party with no beneficial interest has no financial stake in the property, even if their name remains on the legal title temporarily.

Example: During their divorce, a court orders that the family home remains in both John's and Jane's names for the sake of their children. However, Jane is granted sole beneficial ownership. A Declaration of No Interest formally confirms that John has no financial stake in the property, even though his name remains on the title for a specified period.


Income tax and Declarations of No Interest

Declarations of No Interest (often implemented via a Deed of Trust) can be valuable in tax planning, particularly for married couples who jointly own property and wish to share rental income in a tax-efficient manner.

If a married couple jointly owns a property and wishes to be taxed on their actual share of the rental income (known as the 'actual basis' rather than the default 50/50 split), HMRC requires this to be formally documented and reported using HMRC Form 17.

HMRC explicitly states that a verbal agreement is not sufficient. To support a Form 17 declaration, you must provide clear evidence of the unequal beneficial interests, such as a Declaration of No Interest or, more commonly, a Deed of Trust.

Example: Sarah and Mark own a rental property. Sarah is a higher-rate taxpayer, while Mark is a basic-rate taxpayer. By using a declaration of no interest (via a Deed of Trust or Deed of Assignment), they can legally allocate a larger portion of the rental income to Mark, potentially reducing their overall household tax burden.


Declaration of No Interest for protection

It's not always top of mind when moving in together, but unmarried couples should strongly consider drafting a Deed of Trust with an accompanying Declaration of No Interest if one partner solely owns the property. This document protects the sole owner's interests.

Unlike married couples, unmarried partners do not have the same automatic legal protections regarding property ownership. This means that if the relationship ends, disputes over property ownership can arise, even if only one partner is on the legal title.

The partner moving in could potentially make a future claim to a share of the property's beneficial interest based on their contributions (financial or otherwise), which is known as establishing a Constructive Trust, a legal concept where a court may recognise a beneficial interest even if it's not explicitly stated in writing.

A Declaration of No Interest clarifies that the non-owning partner has no beneficial ownership stake. This legally formalises the arrangement and can prevent potential future disputes, ensuring the sole owner's property rights are clear and protected.

Example: Lisa owns her flat. Her boyfriend, David, moves in and contributes to household bills and some mortgage payments. Without a declaration of no interest, David might later claim a share of the property based on his contributions. The declaration clarifies that he has no ownership stake and prevents potential future disputes, offering peace of mind for Lisa.


Get a Deed of Trust - Protect Your Interest

Protect your interest in a property and confirm how to sell. Drafted by a solicitor.

The first draft is within 1 to 2 working days* and includes:

  • Deposit paid.
  • The percentage ownership of each party.
  • How to share expenses like the mortgage and bills.
  • Share of property income - rent or gain on sale.
  • How to sell the property.
  • How the property is divided in the event of separation, divorce, or death.

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Andrew Boast of Sam Conveyancing
Written by:

Andrew started his career in 2000 working within conveyancing solicitor firms and grew hands-on knowledge of a wide variety of conveyancing challenges and solutions. After helping in excess of 50,000 clients in his career, he uses all this experience within his article writing for SAM, mainstream media and his self published book How to Buy a House Without Killing Anyone.

Caragh Bailey, Digital Marketing Manager
Reviewed by:

Caragh is an excellent writer and copy editor of books, news articles and editorials. She has written extensively for SAM for a variety of conveyancing, survey, property law and mortgage-related articles.


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