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Hi.Since an informal separation agreement is not legally binding as far as HMRC are concerned as it doesn't have to be approved by a court, though a court will usually uphold such an agreement if one party reneges on it, the appropriate paperwork transferring legal title really ought to be signed off by the end of the tax year during which a married couple separate.Take a look under the heading "Tax paid on transferring assets between separating spouses here. The article here may also be of interest.I hope this helps but let me know if you have any further questions.
So is that a yes or a no??!
It's a yes.
Is that - yes title needs to be transferred?
As far as HMRC are concerned, the legal owner is the person whose name is ***** ***** title deeds. However, in my experience of dealing with solicitors and HMRC in separation cases, as long as the title transfer paperwork is signed off, that will be good enough.
HMRC recognise the iniquity of a situation where a couple separate late in a tax year and there isn't time to have the Land Registry change the title deed entries. One solicitor I dealt with advised a couple to delay the separation until after the end of the tax year.