What is a Partnership?Make Text Bigger
I have been looking at Property 118 for several months now and have found it a great help in the current climate. I have been wondering if your optimal tax planning strategies would be applicable to my wife and I.
I note that it is said that a partnership is required beforehand to take advantage of incorporating?
We purchased our first letting property in 2002 and now have 14 x houses as single lets (2 x unencumbered).
My wife and I are not in a partnership for the rental properties, but hold them as joint tenants.
I am not trying to shirk around paying the £400 consultation fee, but just wanted your view on the partnership thing, before we proceed.
Your help is greatly appreciated.
REPLY FROM MARK ALEXANDER
Based on what you have explained it is highly likely that you are in fact a partnership.
There is no legislation to compel landlords to register a partnership with HMRC, or to obtain a partnership UTR (Unique Tax Reference) for a partnership.
The legislation in regards to what constitutes a partnership goes back to 1890, please see the link below.
I quote “Partnership is the relation which subsists between persons carrying on a business in common with a view of profit.”
The words I have highlighted are important. The link below is to HMRC’s internal manuals, which answers questions in regards to HMRC’s definition of business.
I look forward to receiving your consultation booking and being of further assistance. Please see the link below.Show Book A Tax Planning Consultation
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