Husband and wife property business

Husband and wife property business

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Husband and wife have been trading as a property management company for 18 months. Buying and improving property to both sell and rent.
Husband has now qualified as a plumber and they have asked if they can include the income from that source as part of partnership.
I dont see why not but has anyone any other advice?

Alan

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By dnicoll
13th Aug 2007 23:07

Maybe
Hi. Insufficient information, but some things to think about - I would just wonder whether the plumbing business and the property management business could be construed as the same trade - or whether they need declaring as separate trades? I suppose that could depend on the type of work done by the property management business. Is this a partnership or a company, by the way? That could affect the answer - and would certainly create different tax management opportunities for the rental vs. selling bits of what they do as well.

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Teignmouth
By Paul Scholes
14th Aug 2007 10:15

Yes but
Hi Alan

Again may need more info & I am assuming we have a partnership for everything at the moment.

If they have had to buy in plumbing services to run the property management or to carry on the property development side then, as long as any plumbing income did not become a major part of the overall operations, I'd not bother to declare it as a new trade...BUT property management, property development & most certainly property rental are 3 distinct operations so it very much depends on how they are linked and the history of operations as to how & where this new avenue fits.

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