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Flat rental and partnerhsip return

Flat rental and partnerhsip return

A trading H & W partnership wiith 31 December year end now has title to a residential property that is let out. I would be interested to know if you would simply eneter details of flat income expenses in the property supplement of the partnership return (would have to be to the accounts year so 31 December) as per the partnership return notes, or would members simply take half straight to their personal SA returns to 5 April? The property is not included in the partnership accounts.



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20th Feb 2013 21:23

Not partnership

I'd be 50:50 if the property was in the accounts but as it's not I'd just declare it as normal in the personal SA returns

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By DMGbus
21st Feb 2013 09:02

Keep out of partnership; VAT note

My preference would be to keep personal joint income out of the partnership.

VAT is something worth considering here - not asked about, but I think worth mentioning.  The following points apply regardless of whether the rental income is in the partnership or not.

If the Flat Rate VAT scheme is used for ther trade then VAT will be payable on the rental income as it is in the same ownership / proprietorship as the VAT registered businessIf conventional (ie. not flat rate) VAT accounting is used by the partnership business do not overlook the possibility of recovering VAT on costs relating to the rental income: in my experience the partial exemption rules most often DO permit full recovery of VAT incurred on rental account costs such as agents fees and property maintenance.If the rental income relates to holiday lets then even under conventional (ie. not flat rate) VAT accounting VAT is payable on the rental income (because in same ownership / proprietorship as the trade)

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28th Feb 2013 15:40

Thanks for replies, so if it is included in the partnership return the property figures would be up to 31 December to match the partnership accounts whereas if taken straight to the personal returns the figures would be to 5 April, would this be correct?



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