Shared Ownership

My client owns a farm and is about to undertake some work with another local farm. To undertake this work they have decided to purchase a tractor for £6000 plus VAT. The cost is to be split half and half. I am unsure how to deal with this in terms of who 'owns' the tractor and who claims the VAT etc. Would it be possible for 'A' to own the tractor and for 'B' to have loaned the £3000 to A, the loan then sitting in the balance sheet?Presumably ongoing maintenance costs would have to be done via a gentleman's agreement, with A invoicing B for half of the costs?

Comments
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It's a tractor of two halves

Steve Kesby |
Steve Kesby's picture

Thanks Steve, but what

Jon Dawson |

Seems a bad idea

Roland195 |

I am inclined to agree, but

Jon Dawson |

On their own heads then

Roland195 |

Having thought further about

Jon Dawson |

Marriage is a bad idea...

Steve Kesby |
Steve Kesby's picture