Mark Smith (Barrister-At-Law)

Registered with Property118.com
Wednesday 27th November 2013


Latest Comments

Total Number of Property118 Comments: 210

Mark Smith (Barrister-At-Law)

13:42 PM, 28th November 2018
About 2 weeks ago

Form 17, Declaration of Trust and 60 days?

Form 17 needs to be sent to hmrc within 60 days of the execution of the DoT.... Read More

Mark Smith (Barrister-At-Law)

10:58 AM, 25th November 2018
About 3 weeks ago

Help with passing property rental to my wife for tax purposes

Reply to the comment left by Mark Smith (Barrister-At-Law) at 25/11/2018 - 10:29
More widely-
Sale of the beneficial interests in the properties as part of an incorporation by BICT is similarly not affected by settlements clawback.
What the law rightly does not permit is transferring of income streams without the unconditional transferring of the underlying asset producing the income at the same time. See Chapter 5A ITA 2007 added by Sch 25/FA 2009.... Read More

Mark Smith (Barrister-At-Law)

10:29 AM, 25th November 2018
About 3 weeks ago

Help with passing property rental to my wife for tax purposes

You cannot use a DoT (or anything else) to transfer an income stream.
You can use a DoT to gift property to a spouse or civil partner. In this case the settlement clawback will not apply to income arising on that gift.... Read More

Mark Smith (Barrister-At-Law)

19:50 PM, 29th October 2018
About 2 months ago

Taxation Questions on Formation of Property Partnerships

Reply to the comment left by Mark Alexander at 29/10/2018 - 19:44
Yes it is. There is no fixed answer to the question of SDLT for non-connected partners-it all depends on the consideration. If only connected partners enter the partnership there is no SDLT.... Read More

Mark Smith (Barrister-At-Law)

19:07 PM, 29th October 2018
About 2 months ago

Taxation Questions on Formation of Property Partnerships

Does the legal and/or beneficial ownership of the properties need to be transferred into joint ownership in order for the partnership to be legitimate?
NO, THE BENEFICIAL INTEREST IN PROPERTY CAN BE HELD ON TRUST FOR A PARTNERSHIP BY THE LEGAL OWNER
Are capital gains crystallised by the formation of a partnership in this instance?
ON THE ASSUMPTION OF DEBT HELD BY ONE PARTNER BY THE OTHER-YES. OTHERWISE NO.
Is Stamp Duty payable upon formation of the partnership? LET'S SEE--
Transfer of chargeable interest to a partnership: general
10(1)This paragraph applies where—
(a)a partner transfers a chargeable interest to the partnership, or
(b)a person transfers a chargeable interest to a partnership in return for an interest in the partnership, or
(c)a person connected with—
(i)a partner, or
(ii)a person who becomes a partner as a result of or in connection with the transfer, transfers a chargeable interest to the partnership.
It applies whether the transfer is in connection with the formation of the partnership or is a transfer to an existing partnership.
(2)The chargeable consideration for the transaction shall (subject to paragraph 13) be taken to be equal to—

where—

RCP is the relevant chargeable proportion,
MV is the market value of the interest transferred, and
AC is the actual consideration for the transaction.
(3)The relevant chargeable proportion in relation to the market value of the interest transferred is—

where SLP is the sum of the lower proportions.

(4)The relevant chargeable proportion in relation to the actual consideration for the transaction is—

where SLP is the sum of the lower proportions.... Read More