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
- Professional coaching claimable? 67 1
- Sage instant account codes 113 1
- Networking 122 1
- What VAT to reclaim on van purchased on HP? 264 4
- Mobile phones, directors of micro-companies 165 1
- Turnover on a tax return 293 8
- incorrect old p60 448 11
- Cashflow forecasting software 302 4
- Letter to HMRC over 3 months ago, still no reply 1,931 19
- Companies House paper incorporation - date of birth omission 284 4
- US company hiring UK citizens in UK 247 3
- VAT refund 177 1
- Is there an AIA calculator anywhere 257 1
- Reclaiming VAT on refurbishment cost? 268 3
- Missing tax return 392 4
- Are you going to Tick and Bash on 21 May? 1,127 30
- Inflation and fees 1,408 24
- Sage Priority Support 192 3
- Cost of demolition of a shed - revenue or capital? 846 24
- Micro-entity accounts 309 1