Holdover for letting business
I have a couple of clients who run property partnership business. These are run commercially with accounts, payroll and with a view to profit etc.
They are both coincidentally looking to incorporate for completely separate commercial reasons. One outcome of incorporation is the possibility of claiming some sort of holdover relief, namely for example s162.
However, in the first instance, gut reaction is that, a letting business is not a trade and therefore will not qualify. However, on deeper review of legislation, it is clear that firstly, s162 has a wider definition to encapsulate the term 'business' as opposed to trade, and secondly there is no definition of 'business' in the legislation.
The Revenue manuals state that they themselves have not defined 'business' but that in practice it would have its normal definition, whatever that is.
I am wondering whether anyone has been successful in agreeing a holdover claim for a rental business run as a substantial partnership, i.e. more than just husband and wife, in treating it as a business for the purposes of s162. On the other hand I would like a definitive reason why it would not be available.
Any help would be most useful.
- Can interest received be netted against interest paid in this scenario? 130 2
- Film Actors - Averaging? 335 9
- Paying Harvest casuals and casual beaters 216 3
- FreeAgent question 113 2
- Retrospectively change VAT scheme? 141 2
- CIS monthly returns 192 2
- Goodie bag 1,562 52
- Husband Wife let property 354 9
- Partnership Tax Return £100 penalty-was a tax return due in this case? 503 12
- Output tax for retailer 319 8
- Footballers Testimonials Taxable? 289 3
- 13-14 Payroll return needs to be filed 142 2
- Payroll Software & Auto Enrolement 139 1
- CT600 Advice 147 1
- Fair Value Accounting 83 1
- Client incurring expenses on company car 163 4
- can I approach clients ? 418 8
- Companies House Penalties 156 2
- Apostille documents 121 2
- Budget 2015 predictions 551 13
- Possible Partnership? 645
- Tax and accounting treatment on long lease granted from freehold 521
- New Fangled Penalties 450
- Fuming! 384
- Purchase of property freehold - capitalisation of costs 319
- Charity dissolution and newly merged charity 259
- Outsource Data Entry 243
- Lenovo – Superfish & Komodia – is your PC vulnerable 238
- Moving away from CCH software 231
- Do I need a US Tax Identification Number to complete W-8BEN-E? 178