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?
- CT600 - Credit balance in expenses? 203 7
- Form 17 Download 36 1
- Client in dispute with Customer over cancellation charge 1,315 31
- Claiming VAT on car lease 519 28
- Do you use commercial software for Self Assessment tax returns? 104 3
- Small hotel - food for personal use 352 4
- HMRC Information notice 971 24
- Recommendations for online payroll software 253 3
- Accountant Specialization. 351 5
- Correcting earlier year CT600s 195 3
- ACCA Special Business Resolutions... 132 1
- Accounting Web - What is happening? 1,722 42
- Sage Line 50 158 3
- Off topic slightly - any football fans out there? 145 1
- Can my company contibute more than 40000 to my pension in a tax year? 416 6
- CWF1 - is it still required?? 386 7
- Seafarer's Earnings Deduction 154 1
- Freelance/Employee 694 17
- Rectify overpaid childcare vouchers, how? 187 2
- Capital Gains Tax on property with multiple uses 137 1
- Chart of account segments; Balance sheet vs P&L 750
- Any knowledge of salesorder.com 410
- Could and would anyone here carry out a hot file review of some non statutory audit work please? 362
- Electric Car 297
- S222 Charge 242
- Corporation tax penalties and fines on the CT600 198
- IP trans to holding company 192
- Software to Deal with Amazon and Ebay Sales 177
- AIA 171
- Best way to convert Sage data to VT Transaction+ 171