Forming a partnership and description of trade?Make Text Bigger
I read with interest regarding partnerships to mitigate tax. I have spoken to my accountant and he says when it comes to the application to set up a partnership tax UTR (unique tax reference) the description of the trade involved has to be specified which he reckons could be an issue because HMRC may argue that my property portfolio is an investment, not a business.
I have a joint property portfolio with a family member and we are looking to transfer a percentage of the property ownership to our spouses and form a partnership. At the moment, we have letting agents to manage the portfolio to enable us to be as hands-off as possible, but I’m sure experienced landlords out there know that even then it’s still a lot of work!
My questions are:
1) How can we form a partnership and get the UTR, given that letting agents manage the portfolio?
2) What are the advantages (and disadvantages) of adding my own Ltd company to the partnership? (From what I’ve read, adding my own Ltd company to manage my properties means I can charge a management fee, but I’m not looking to self-manage as I want to continue to use agents)
Thanks for any help in advance!
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