Tax relief please!
Mr A and Mrs B are married
Mr A is an employee of a company not related to Mrs B, he is not a director.
Mrs B is a sole trader with losses as at 05.04.11 of £15k+
Mr A wishes to spent £25,000 on a new unit for Mrs B's business
Mr A would obviously like to get some return on the cost of the loan he is taking out to fund the purchase.
An "at arms length" rental agreement may well be challenged by HMRC and would not be beneficial from a tax point of view, as income would be being moved from non-tax paying Mrs B to tax paying Mr A.
Mr A could become a partner with an agreement that profits would be allocated after the loan interest costs were allocated to Mr A. But this would only seem to work if the partnership continues to make losses!
Mr A and Mrs B are not keen on the idea of Mr A forming a limited company to receive the rent, and taking the income via divdends.
Has anyone got any ideas?
- Unallocated client money 208 7
- first year company tax return for a limited company 45 2
- Donaldson v HMRC case being heard tomorrow! 144 2
- Dissolve a Ltd Company - How much do you charge? 362 6
- change of office address 96 4
- Hive up - accounting and notes to financial statements 208 3
- Incorporation Relief 100 4
- Letting income or partnership income? 77 2
- Legal Advice Needed Bank Account Blocked 348 4
- Quick Easy Quote 213 3
- Furniture Rental Business 83 2
- Client Death 539 9
- Accounts formation/ speculative advertising 181 4
- Moving into own BTL property - allowable costs 352 2
- Are Bursaries Taxable 98 2
- Will Ni be payable on the salary I receive abroad ? 320 1
- Entrepreneurs relief available? 148 3
- Accountancy Software Recommendation for eCommerce Business 415 5
- What is going on with VAT applications?? 1,930 38
- Do I need to report this to SOCA 971 15
- Proposed Amendments to IAS 1 601
- Property exchange - 8-year legal delay following fall-out 473
- Sorry ignore me 373
- Accounting for Insurance Premium Financing 365
- SAGE Payroll Data for Import to MS Dynamics AX 278
- Cancelled 238
- Cancelled 207
- Bartercard 170
- C79 Discrepancy 165
- Sage Report Designer - Nominal Activity in Currency 158