the division of property
I have a client who along with his wife owns jointly and equally a number of properties with another party that are mortgaged in 4 names and are let out . There is an acrimonious split going on .
HMRC a long time ago agreed that there is not a partnership in place and this is still the view as per PIM 1030 there is no other link between these parties . Their arrangement was a bit unusual in that one party found and puchased the properties the other arranged the funding and refinancing ,the person who found the property was obviously "on the ground ", the person doing the funding was 600 miles away and never saw the properties.
The properties were good ,the work done to them was good ,the renting occupancy and attention to tenants was good and all the funding was and continues to be good, the problem is they now have fallen out over relatively simple but numerous issues.
My client has agreed in a series of emails to the division of the properties, the properties were put into small groups and my client allowed, rashly , his former investment colleague to make the allocations over a period of a year ,upon reflection and viewing the properties (he is the funding person ) my client finds that "the fair division " of the properties is not so both in terms of value and the types of properties.
He wishes to renegotiate the division of properties ,the other party advises he is content with the division as is ....the question now is?
Is my client free to renegotiate the property division or is he bound by the email agreements?
He had pointed out throughout the divisions that all divisions were part of the overall division process which would involve the division of properties ,the division of bank overdrafts and the division of remaining cash..and subject to review but he has also agreed in emails that he agreed with the divisions as they were happening.
Thirty properties have without any acrimony been divided over the previous 2 years and the bank overdraft has been split recently with my client reluctantly agreeing to the division of a number of properties to save planning permissions running out for his former investment colleague .
The question is again how bound is my client by his email commitment ?. thank you
- Do accountants work at home? 33 1
- Sage 50 accounts 50 2
- Keeping disastrous accounts 498 6
- Where has Portia gone? 5,591 117
- What do people do with signed accounts/engagement letters/tax returns? 446 12
- Help 405 13
- Can a trust benefit from PPR 668 5
- Is a new PAYE scheme needed for incorporated business? 85 3
- P11D Expenses Claims 88 1
- Lost "thanks" 149 2
- Moneysoft or Sage payroll with auto enrolment? 364 7
- OMG HMRC !!!! Employ some ppl!! 827 14
- VAT Exemptions for Dance Education 173 3
- Stock of photos to capatilise 444 18
- Anyone used the firm 'More Clients 4 U? 260 6
- Practice management software 1,173 22
- What is the correct Vat treatment and rate to use to record a business stay in a hotel in the EU? 197 2
- On the high seas 200 3
- US Company charging VAT. How to account 117 1
- RTI Payroll ID 2,128 26
- Services via intermediaries and new HMRC reporting requirements 861
- How hard is it to reduce a code? 452
- Sanzar 353
- How do you do it 343
- Digital marketing focus group 316
- Kashflow balance sheet difference 300
- Bed & Breakfast trade via Limited Company 215
- Fit for purpose 204
- new investor structure 203
- VAT Registration 184