Partnership property owned by partner and Entrepreneurs relief
The partnership along with it's business premises and my client partner have been together for decades. He (the partner) and his wife (who is not a partner and has nothing to do with the business) own the premises and want to sell or transfer it when he retires soon.
To gain ER on the whole of the property would it be OK for her to transfer her share to him before the retirement and then for him to sell/transfer it all on his retirement?
From what I can tell it's his involvement in the business that requires a one year qualification whereas I can't see anything that requires the same for his ownership of the whole property.
The above is a simplified version of the actual facts but I'm hoping someone else may have dealt with something similar. By the way, in case anyone asks, yes they did charge a rent and so there will be a restriction in ER, however, considering how long the property has been owned, it will be minimal.
Thanks in advance.
- Stand alone practice management software 1,734 26
- Allocation of income from property 657 23
- RTI and Advances to Employees 393 10
- CTA 249 3
- AIA/Capital Allowances 342 11
- Selling to USA, Delivery to Poland, VAT? 118 3
- Anybody got through to VAT today? 38 1
- Anyone else experiencing issues with sage 50 payroll 764 22
- Payment on account reminders 115 1
- Time values in Excel 154 3
- No more tax returns... 1,375 12
- bookkeeping system 561 8
- Spanish Assets taxation - UK Residence 176 3
- HELP CT Return filed but doesnt match up HMRC's AP 225 6
- International VAT 128 2
- Office 365 vs. Google apps 655 9
- Insurance payout 147 1
- Non-UK resident - where to pay income tax? 537 11
- RTI / P11d 188 2
- Are any of you members of The Institute of Financial Accountants - Accountnats certificate 1,111 21