Hugh Nogan

Registered with Property118.com
Monday 11th April 2016


Latest Comments

Total Number of Property118 Comments: 3

Hugh Nogan

23:43 PM, 14th April 2017
About 4 years ago

Forming a partnership and description of trade?

Hi Mark

That division can easily be achieved as the properties are currently owned by me and my brother as tenants in common and so for each property we can transfer a specific percentage of our ownership to our spouse tax free. If my undersatnding is correct, then the division of profits and losses can be in a different allocation than ownership?

Hugh... Read More

Hugh Nogan

23:20 PM, 14th April 2017
About 4 years ago

Forming a partnership and description of trade?

Thanks Mark and Kate for the input. I think my problem is that I'm using and planning to continue to use letting agents - it would be very difficult to convince HMRC that we have a "business". Saying that, having looked at the HMRC's Property Income Manual (https://www.gov.uk/hmrc-internal-manuals/property-income-manual/pim1030), it states:
"Where there is no partnership, the share of any profit or loss arising from jointly owned property will normally be the same as the share owned in the property being let. But joint owners can agree a different division of profits and losses and so occasionally the share of the profits or losses will be different from the share in the property. The share for tax purposes must be the same as the share actually agreed.
However, where the joint owners are husband and wife, or civil partners, profits and losses are treated as arising to them in equal shares unless:

both entitlement to the income and the property are in unequal shares, and
both spouses, or civil partners, ask their respective tax offices for their share of profits and losses to match the share each holds in the property."

So, if the properties in my portfolio are held as follows:
Me: 40% ownership
My spouse: 10%
Brother: 15%
Brother's spouse: 35%
Then what are the rules for agreeing division of profits and losses? Does the division have to be in those percentages? Or can it be some other percentage as agreed with all owners?

Thanks in advance!
Hugh... Read More

Hugh Nogan

23:15 PM, 11th April 2016
About 5 years ago

Mortgage Express - Are they looking to break mortgage contracts?

Reply to the comment left by "Monty Bodkin" at "05/04/2016 - 16:26":

Monty, you say "I was offered around 7% reduction from Bank of Ireland." - can you elaborate more on this? I too have a mortgage from Bank of Ireland (it was a Post Office mortgage product) and I would love to be able to get a mortgage reduction as I am looking to sell that property anyway. Anyone else on this forum with experience of this? Thanks in advance!... Read More