What is a declaration of trust, and how do you make one?

In England and Wales, a declaration of trust for property records who owns the beneficial interest behind the Land Registry title. It matters most where co-owners contribute unequally, want tenants-in-common shares recorded, or need evidence for HMRC.

What is a declaration of trust for a jointly owned property?

A declaration of trust for a jointly owned property is a signed written statement saying how the co-owners hold the beneficial ownership, even though the legal title stays in the names of the registered owners. HMRC describes the core idea this way: “A declaration of trust is usually a statement by the legal owner of property that s/he holds the beneficial interest for someone else.” In England and Wales, jointly owned legal title is not split into percentages at the Land Registry in the way beneficial ownership can be: HM Land Registry says, “Joint owners must hold the legal estate as joint tenants, but their beneficial interests may be held either as joint tenants or as tenants in common.” That is why a declaration of trust for jointly owned property is usually about the money value behind the title: deposits, mortgage contributions, sale proceeds, and what happens if one owner wants out.

Who legally owns a property that is held in trust?

The legal owners of a property held in trust are the registered proprietors, while the beneficial owners are the people entitled to the economic value behind that title. HM Land Registry puts the split clearly: “The essence of a trust of land is that the formal title to the land (the ‘legal estate’) is separated from the underlying ownership (the ‘equitable interest’ or ‘beneficial interest’).” For co-owned land in England and Wales, the legal estate is held jointly, even if the beneficial shares underneath are unequal; the Land Registry title therefore does not by itself tell you whether the owners are beneficial joint tenants or tenants in common in unequal shares. The practical point is that the person with legal ownership of property under a trust can sign transfers and deal with the title, but the declaration of trust decides who receives the sale proceeds, rental profits, or other benefits according to the beneficial shares.

Can you use a declaration of trust to split rental income?

A declaration of trust alone does not split rental income tax for married couples or civil partners: HMRC taxes them 50/50 by default regardless of actual beneficial shares, unless they also file form 17 alongside the declaration as evidence. HMRC’s default rule is that “Income from property held jointly by married couples and civil partners is treated as beneficially owned by the individuals in equal shares under ITA/S836.” Form 17 is the tax step, not the trust itself, because HMRC says, “A form 17 declaration is to be distinguished from a declaration of trust.” For unmarried co-owners, property income is generally taxed on the person receiving or entitled to the profits; HMRC states that the person liable is “the person receiving or entitled to the profits”. For a Declaration of Trust rental income split between spouses, the trust sets the beneficial shares, but form 17 is what tells HMRC to tax those actual unequal shares.

Can you make a declaration of trust after you have already bought the property?

Yes, you can make a declaration of trust after purchase in England and Wales, provided the trust of land is evidenced in signed writing by someone able to declare it. The Law of Property Act 1925 requires that “a declaration of trust respecting any land or any interest therein must be manifested and proved by some writing signed by some person who is able to declare such trust or by his will”. That section sets a writing-and-signature formality, not a purchase-day deadline. HM Land Registry’s trust guidance also treats a proprietor executing a declaration of trust as something that can happen as a later event affecting how the estate is held. If a Declaration of Trust is done after purchase, the document should still identify the property, the owners, the beneficial shares, and whether the change affects tax reporting or Land Registry restrictions.

Can you write your own declaration of trust?

Yes, you can write your own declaration of trust in England and Wales, because the statute requires signed writing, not a solicitor-drafted document. The Law of Property Act 1925 says “a declaration of trust respecting any land or any interest therein must be manifested and proved by some writing signed by some person who is able to declare such trust or by his will”. That means a DIY declaration can satisfy the basic formality if it is properly written and signed, but the risk is not the lack of a solicitor’s letterhead; it is unclear drafting, missing beneficial shares, tax consequences, undue influence arguments, or failure to deal with mortgage payments and sale proceeds. Even DIY document providers warn that if you change the wording, “you may want a lawyer to review the document for you”. Abodient can store the signed declaration against the property so the ownership evidence sits with the lease, deposit and compliance records rather than disappearing into personal email.

What does a declaration of trust template need to contain?

A declaration of trust template needs to identify the property, name the legal owners, state the beneficial owners, give the exact beneficial shares, and explain how mortgage payments, repairs, sale proceeds and future changes are dealt with. The most important point for a declaration of trust tenants in common unequal shares template is numerical certainty: HM Land Registry’s guidance says, “The shares should be specified.” A template that merely says the owners are tenants in common is weaker than one saying, for example, 70% and 30%, because the label does not by itself record the split. Market templates commonly include “the proportions in which the owners hold the beneficial interest in (ie actual ownership of) the property” and “the owners’ promised contributions to future mortgage payments and repair and maintenance expenses”. For tax use, especially between spouses or civil partners, the template must also produce evidence HMRC can read alongside form 17.

Does a declaration of trust need to be registered at the Land Registry?

No, a declaration of trust itself does not need to be registered at the Land Registry; at most, the title may need a Form A restriction to show that the property is held on a trust of land. HM Land Registry says the purpose of asking about the trust is “not to give the registrar notice of the trusts under which the land is held, but simply to enable us to decide whether we need to enter a Form A restriction”. The Land Registration Act 2002 also blocks notices of trust interests from being entered on the register, so the private declaration or deed normally remains off-title. A Form A restriction warns buyers and conveyancers that sale proceeds must be dealt with correctly, but it does not reveal the beneficial percentages. That is why the signed declaration remains the key document if the owners later disagree over their shares.

How do you change the percentage split between tenants in common?

You change the percentage split between tenants in common by making a new signed written agreement or deed that transfers or varies the existing beneficial interests. In England and Wales, the Law of Property Act 1925 says “a disposition of an equitable interest or trust subsisting at the time of the disposition, must be in writing signed by the person disposing of the same”. The Court of Appeal has also said that a declaration of trust is “conclusive unless varied by subsequent agreement or affected by proprietary estoppel.” In practice, changing tenants in common percentage shares is often done by a deed of assignment or a fresh declaration of trust recording the new split. If the co-owners are married or civil partners and want HMRC to tax rental income according to the new unequal shares, HMRC says they must provide evidence, “for example a declaration or deed,” with form 17.

Can a declaration of trust be challenged?

Yes, a declaration of trust can be challenged, but a properly made declaration is hard to displace unless there is fraud, mistake, undue influence, later agreement, rectification, or proprietary estoppel. The Court of Appeal stated the narrow challenge route directly: “A declaration of trust can be set aside for fraud, mistake or undue influence but nothing of that kind is alleged in this case.” It also said that where a conveyance contains an express declaration of trust which comprehensively declares the beneficial interests, “there is no room for the application of the doctrine of resulting implied or constructive trusts unless and until the conveyance is set aside or rectified”. That means a co-owner usually cannot ignore the declaration and re-run the whole dispute by arguing who paid the deposit or mortgage. The better challenge is a direct one: prove the declaration should be set aside or corrected.

What invalidates a declaration of trust?

A declaration of trust over land is invalid as a formal declaration if it is not manifested and proved by signed writing from someone able to declare the trust. The Law of Property Act 1925 says “a declaration of trust respecting any land or any interest therein must be manifested and proved by some writing signed by some person who is able to declare such trust or by his will”. That is a different issue from challenging a valid declaration later. Invalidity asks whether the declaration ever satisfied the legal formality in the first place; challenge asks whether a validly made document should later be set aside for something like fraud, mistake or undue influence. A purely verbal agreement about property shares is therefore unsafe for a declaration of trust of land, because the statutory rule demands signed written evidence. If the signed document exists but says the wrong thing, the route is usually rectification or setting aside, not pretending it never existed.

How much will a solicitor charge for a declaration of trust?

A solicitor commonly charges about £200 to £1,000 for a declaration of trust in England and Wales, with simple fixed-fee examples clustering around £399 to £500 plus VAT or including VAT depending on the firm. There is no statutory tariff for a declaration of trust: solicitors’ non-contentious costs must be “fair and reasonable having regard to all the circumstances of the case”. Published prices vary. Chubb Bulleid says, “A simple declaration of trust is charged at a fixed rate of £500 plus VAT.” MCP Law quotes an added purchase-conveyancing fee of “between £200.00 + VAT of £40.00 ( a total of £240.00) to £400.00 + VAT of £80.00 ( a total of £480.00)”. Parachute Law advertises a “Fixed Fee of £399 INC VAT”. The price rises where the ownership split is disputed, the drafting is bespoke, tax advice is needed, or the declaration is tied into a transfer or remortgage.

Last reviewed September 2026.

Sources

• Law of Property Act 1925 s.53(1)(b) — “a declaration of trust respecting any land or any interest therein must be manifested and proved by some writing signed by some person who is able to declare such trust or by his will”. Source
• HMRC Trusts, Settlements and Estates Manual TSEM9520 — “A declaration of trust is usually a statement by the legal owner of property that s/he holds the beneficial interest for someone else.” Source
• HM Land Registry Practice Guide 24 — “The essence of a trust of land is that the formal title to the land (the ‘legal estate’) is separated from the underlying ownership (the ‘equitable interest’ or ‘beneficial interest’).” Source
• HM Land Registry Practice Guide 24 — “Joint owners must hold the legal estate as joint tenants, but their beneficial interests may be held either as joint tenants or as tenants in common.” Source
• HMRC Property Income Manual PIM1030 — “For income tax purposes, under S271 ITTOIA05 the person liable to income tax on the profits of a property business is ‘the person receiving or entitled to the profits’.” Source
• HMRC Trusts, Settlements and Estates Manual TSEM9814 — “Income from property held jointly by married couples and civil partners is treated as beneficially owned by the individuals in equal shares under ITA/S836.” Source
• HMRC Trusts, Settlements and Estates Manual TSEM9851 — “A form 17 declaration is to be distinguished from a declaration of trust (see TSEM9520).” Source
• HM Land Registry Practice Guide 24 — “The shares should be specified.” Source
• Rocket Lawyer UK, Declaration of Trust — “the proportions in which the owners hold the beneficial interest in (ie actual ownership of) the property”. Source
• Rocket Lawyer UK, Declaration of Trust — “the owners’ promised contributions to future mortgage payments and repair and maintenance expenses”. Source
• Rocket Lawyer UK, Declaration of Trust — “However, if you do this, you may want a lawyer to review the document for you (or to make the changes for you) to make sure that your modified Declaration of Trust complies with all relevant laws and will be enforceable.” Source
• Land Registration Act 2002 s.33 — “No notice may be entered in the register in respect of any of the following—”. Source
• HM Land Registry Practice Guide 24 — “The purpose of making a declaration as to the nature of the trust is not to give the registrar notice of the trusts under which the land is held, but simply to enable us to decide whether we need to enter a Form A restriction”. Source
• Law of Property Act 1925 s.53(1)(c) — “a disposition of an equitable interest or trust subsisting at the time of the disposition, must be in writing signed by the person disposing of the same”. Source
• Pankhania v Chandegra [2012] EWCA Civ 1438 — “such a declaration of trust is regarded as conclusive unless varied by subsequent agreement or affected by proprietary estoppel.” Source
• HMRC form 17 guidance — “You’ll also need to provide evidence that your beneficial interests in the property are unequal, for example a declaration or deed.” Source
• Pankhania v Chandegra [2012] EWCA Civ 1438 — “A declaration of trust can be set aside for fraud, mistake or undue influence but nothing of that kind is alleged in this case.” Source
• Pankhania v Chandegra [2012] EWCA Civ 1438 — “If, however, the relevant conveyance contains an express declaration of trust which comprehensively declares the beneficial interests in the property or its proceeds of sale, there is no room for the application of the doctrine of resulting implied or constructive trusts unless and until the conveyance is set aside or rectified; until that event the declaration contained in the document speaks for itself.” Source
• Solicitors’ (Non-Contentious Business) Remuneration Order 2009 art.3 — “A solicitor's costs must be fair and reasonable having regard to all the circumstances of the case and in particular to—”. Source
• Chubb Bulleid Solicitors, Declaration of Trust — “A simple declaration of trust is charged at a fixed rate of £500 plus VAT.” Source
• MCP Law, Residential Property Pricing — “between £200.00 + VAT of £40.00 ( a total of £240.00) to £400.00 + VAT of £80.00 ( a total of £480.00)”. Source
• Parachute Law, Deed of Trust — “Fixed Fee of £399 INC VAT”. Source
• Bird & Co Solicitors, Declaration or Deed of Trust — “The cost of a Declaration of Trust can differ depending on the solicitor and typically ranges from £200 to £1000.” Source