Daren Peacock

Registered with Property118.com
Wednesday 21st June 2017

Latest Comments

Total Number of Property118 Comments: 5

Daren Peacock

16:38 PM, 21st September 2017, About 4 years ago

Is a Property Partnership future proofing my business?

So if they are already a partnership there shouldn’t be a problem with the carried forward losses provided they’ve arisen whilst operating in partnership . It would just be a matter of convincing HMRC that they should have technically been reported via a partnership tax return. They would not be ‘switching’ from joint ownership by formalising the partnership so I think Mark’s response is misleading.... Read More

Daren Peacock

11:32 AM, 28th June 2017, About 4 years ago

SDLT Treatment For Property Partnerships At Incorporation

Partnerships are not exempt from SDLT - its just that the consideration is deemed to be nil in certain circumstances.

Sole proprietors are subject to SDLT on incorporation as they cannot rely on the partnership rules to trump the general market value rule.

All partnerships are businesses but not all businesses are partnerships. They are not synonymous although it would appear HMRC are accepting clearances that certain businesses are partnerships even though not formally constituted.... Read More

Daren Peacock

9:14 AM, 21st June 2017, About 4 years ago

Open Letter to HMRC - Clarification of "BUSINESS"

Reply to the comment left by "Mark Alexander" at "21/06/2017 - 09:11":

Have you obtained clearance for a small number of properties?... Read More

Daren Peacock

8:58 AM, 21st June 2017, About 4 years ago

Open Letter to HMRC - Clarification of "BUSINESS"

Reply to the comment left by "Mark Alexander" at "21/06/2017 - 08:41":

No not aware of any Mark but the big question is whether any property letting is a 'business' or whether it is a question of the degree of activity. I agree that any residential landlord cannot be holding property passively if he has to comply with over 180 pieces of legislation.

If HMRC are insistent that there must be a certain level of activity, this is going to lead to absurdities. For example, compare a landlord letting 5 new builds to professional tenants spending 2 hours/week (low maintenance/great tenants) and one letting 5 old properties to council tenants spending 15 hours/week (high maintenance/poor tenants). This suggests that only the latter would be held to be in 'business'. This would be absurd. Using an agent is another example (farmers also sub-contract but that doesn't make them any less a farmer).

The open letter to HMRC is commendable but I'm merely stating that the Tribunals have (historically) focused on the context.... Read More

Daren Peacock

8:35 AM, 21st June 2017, About 4 years ago

Open Letter to HMRC - Clarification of "BUSINESS"

Unfortunately, there is no consistent definition of the meaning of 'business' for tax purposes - it depends on the context in which is it found - it is an etymological chameleon. Of course Section 264 ITTOIA 2005 describes letting as a 'UK property business' for income tax purposes but that is not to say it is a business for Section 162 TCGA 1992 incorporation relief purposes. There ought to be consistency but this is not how the Tribunals approach the issue.... Read More