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Post Info TOPIC: Furnished Holiday Let - Partnership Share
Wella


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Furnished Holiday Let - Partnership Share
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I have a technical question, which I am hoping someone can clarify for me.

Looking through HMRC tax return notes for UK property, I see that the profits on jointly owned property, can be distributed in any ratio for a partnership, except if jointly owned by a married couple, or a couple in a registered civil partnership. It is deemed that they are due equal shares of the profits (it doesn't mention losses).

My question is, if the partners simply live/ co-habit together, can the distribution of a loss be assigned to an individual in full (they have an open ended partnership agreement, so they can normally distribute profits/ losses, anyway they want)

The reason I ask is that one of the partners owns rental property independently of the partnership, and was also employed (mainly to cover the losses made by the furnished holiday let). It would be more tax efficient if she was able to take the loss.

Any response gratefully received.

Peace on Earth, and goodwill to all men (and women)    psptubez_xmas_574.png

Bill

...and yes I am working on Christmas Eve no



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YLB-HO


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I've tried several times to post an answer, but something always comes up before I manage to finish!

So very quickly - the answer is yes you can allocate the profit or loss how ever the partnership decides. You may have to justify why to HMRC if they ask. (The partners agreed thats how it was to be divided!)



-- Edited by YLB-HO on Wednesday 28th of December 2011 11:25:48 AM

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Frauke
BKN Book-keeper of the year 2011
Wella


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Hi Frauke

Many thanks for your response.

It was one of those questions, where I was pretty sure of the answer but needed a bit of reassurance.

Bill



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