Furnished Holiday Lettings

Jointly owned

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Hi all.

I have an unmarried couple who are jointly purchasing a FHL property in the next month or so.

My questions relating to the FHL are as follows:

- does a formal partnership need to be setup with HMRC?

- is it possible to apportion profts to the couple on a different basis other than 50/50 (they are going to be owning the property on a 50/50 basis)

As they would like to split the profits on a basis that is in favour of one partner (for basic tax reasons) I was wondering if setting up a partnersip may be the best way forward (even if it is not necessarily required by HMRC).

Any feedback would be appreciated!!

Replies (4)

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By Duhamel
31st Aug 2016 10:48

S836 ITA 2007 - it does not need to be 50/50. No partnership return is required.

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Replying to Duhamel:
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By simonhyett
31st Aug 2016 11:10

Hi thanks for the response. I was under the impression that only applied to married couples and civil partners

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By User deleted
31st Aug 2016 11:04

Except that s.836 ITA/07 applies to married couples or civil partners

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By Duhamel
31st Aug 2016 11:12

Apologies all. Mis-read the question.

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