Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers’ forum: How should couple be taxed on business incorporation?

06 May 2024
Issue: 4935 / Categories: Forum & Feedback , Income Tax
Property incorporation

Since the introduction of the restriction in mortgage interest relief many buy-to-let individuals have incorporated their property portfolio. I understand that to qualify for incorporation and SDLT relief it is necessary for the property portfolio to be run as a business and SDLT relief is available to a partnership.

A new client who owns a substantial property portfolio (of over 20 properties) with his wife wants to explore incorporating the portfolio. Currently they declare the rental income directly on their tax returns and they do not file any partnership returns.

I am satisfied that they are running a partnership business as both actively manage the portfolio and easily spend over 20 hours each week on this. My question is: should they be filing a partnership tax return to support their case if they decide to go ahead and incorporate and if so are they liable...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon