Martin Wardle

Registered with Property118.com
Wednesday 8th March 2017


Latest Comments

Total Number of Property118 Comments: 6

Martin Wardle

20:01 PM, 9th March 2017
About 4 years ago

I think our accountant may have messed up

Nope but there has never been a time when so many people started trying to be partnership either.

The link on allocated shares is again. It connected to the point of whether there is a partnership. It is well established that non married / non civil partner joint owners can allocate profits different to ownership but it does not apply to married couples.

Rather than keep sounding like a broken record I'll drop out here as I'm not sure any progress is made on the two opening points. That is you cannot simply pay any costs and hope for a deduction and that joint investment is very rarely a partnership.

Time will tell as and when HMRC start enquiringly into SDLT returns on the partnership point and meanwhile advisers need to ensure their PI is up to date.

Also don't forget that all of the main institutes issued guidelines to members recently stating that they should not go against HMRC stated beliefs without risking their memberships... a sure sign that they (HMRC and the professional bodies) have had enough of artificial arrangements.... Read More

Martin Wardle

7:38 AM, 9th March 2017
About 4 years ago

I think our accountant may have messed up

Reply to the comment left by "Mark Alexander" at "09/03/2017 - 07:00":

Ramsay looked at whether there is a property business. It does not and did not need to review whether there was a partnership as that is not in question when holding over CGT on properties.

Having a partnership depends more on what you do above and beyond the letting of properties. PIM1030 tells us that to have a partnership you need to provide significant additional services in return for payment. Very few landlords do this...... Read More

Martin Wardle

23:20 PM, 8th March 2017
About 4 years ago

I think our accountant may have messed up

Reply to the comment left by "Mark Alexander" at "08/03/2017 - 11:56":

I know the case Mark. I have clients that have clearance on the same grounds. The case does not answer the partnership question however. It asks if the activity was sufficient to qualify as a property business. They are not the same even though often confused in common language use.... Read More

Martin Wardle

23:11 PM, 8th March 2017
About 4 years ago

Yet another financial blow to landlords - ATED?

Reply to the comment left by "Charles Mackay" at "08/03/2017 - 13:44":

Chris is right. Doing something in a commercial basis bears no relevance to commercial property...... Read More

Martin Wardle

11:46 AM, 8th March 2017
About 4 years ago

I think our accountant may have messed up

Penny

Whilst you can pay your husband what you want, and he will be taxed on it, to claim a deduction it must be at a commercial rate. This is one of the basic rules of deduction.

You are very unlikely to be a partnership if all you provide is rental. You no doubt have a joint investment.

You could however consider the use of a very basic Form 17 in conjunction with a declaration of trust depending on the exact nature of ownership and where the funds came from etc. Can only be backdated 30 days from signature but do it before 6 April and at least you'll be set for the upcoming tax year.

Take care not to do anything based on forum responses... including mine! Do a fact find with a Chartered Tax Adviser, they will get the rest of the information they need to be able to help.

On suing your accountant?! Very hard but not impossible. Depends if you have engaged them for TAX ADVICE!... Read More