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Husband and Wife Partnership

How to add son to Husband and Wife Partnership.

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My wife and I have an informal property investment partnership with equal share and carry out this business in our personal names. Tax is paid via individual Self-Assessments. We now wish to add our adult son to the partnership. He has no employment and no earnings. We are happy to be jointly and severally liable for all undertakings. Our son will not be introducing any capital/funds into the partnership. We are happy split the assets equally amongst us.  How can this be implemented in the simplest way?   Your valued advise will be most appreciated.

Replies (33)

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Psycho
By Wilson Philips
31st Aug 2020 12:15

DIPAK RAJGOR wrote:

   Your valued advise will be most appreciated.


If the advise (sic) is valued then how do you propose to pay for it? But here is a free tip - your query would be better placed on a legal forum.
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Replying to Wilson Philips:
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By Tax Dragon
31st Aug 2020 12:20

Priceless.

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Replying to Wilson Philips:
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By DIPAK RAJGOR
31st Aug 2020 12:36

Yes, fair comment.

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Replying to Wilson Philips:
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By DIPAK RAJGOR
31st Aug 2020 12:39

Fair comment. Question asked on FREE legal forum and already answered. So posting this question did indeed help. Thanks.

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Replying to DIPAK RAJGOR:
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By Tax Dragon
31st Aug 2020 14:25

DIPAK RAJGOR wrote:

Question asked on FREE legal forum and already answered.

That may or may not be true.

Let me assure you, however, that even if you have received an answer on a free legal forum, you have not there received advice. Advice, as you say in your OP, is something to be valued - something worth paying for. In contrast, answers are easy. And may be worthless.

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Replying to Tax Dragon:
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By DIPAK RAJGOR
31st Aug 2020 14:41

This is pure rantings of a madman!

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Replying to DIPAK RAJGOR:
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By Tax Dragon
31st Aug 2020 14:52

DIPAK RAJGOR wrote:

This is pure rantings of a madman!

You don't need to fess up to that. It was already obvious.

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Replying to Tax Dragon:
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By Tax Dragon
31st Aug 2020 14:51

Tax Dragon wrote:

That may or may not be true.

Having now seen the alleged answer below, I vote "not true".

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Replying to Wilson Philips:
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By DIPAK RAJGOR
31st Aug 2020 12:41

advise
/ədˈvʌɪz/
Learn to pronounce
verb
offer suggestions about the best course of action to someone.
"I advised him to go home"

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Replying to DIPAK RAJGOR:
Psycho
By Wilson Philips
31st Aug 2020 13:05

advice
/ədˈvʌɪs/

noun
noun: advice; plural noun: advices

1.
guidance or recommendations offered with regard to prudent future action.
"my advice is to see your doctor" (or, in this case, your lawyer)

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Replying to Wilson Philips:
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By DIPAK RAJGOR
31st Aug 2020 13:16

Thank you for your obsession with me!
I ask questions not answer them!
English is my second language.
How good is your Hindi?
Have a great day!

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By Wanderer
31st Aug 2020 12:37

DIPAK RAJGOR wrote:

My wife and I have an informal property investment partnership with equal share and carry out this business in our personal names. Tax is paid via individual Self-Assessments. We now wish to add our adult son to the partnership. He has no employment and no earnings. We are happy to be jointly and severally liable for all undertakings. Our son will not be introducing any capital/funds into the partnership. We are happy split the assets equally amongst us.  How can this be implemented in the simplest way?   Your valued advise will be most appreciated.

Your first sentence is unlikely / unusual (not impossible).
You have most probably started your quest for advice on the wrong foot.
Speak with your accountant who will be able to advise, knowing the underlying facts.
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Replying to Wanderer:
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By DIPAK RAJGOR
31st Aug 2020 12:45

Thank you for your response. "Informal" as in not a written agreement. I believe most Husband and Wife partnerships would be informal.

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Replying to DIPAK RAJGOR:
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By Wanderer
31st Aug 2020 13:43

DIPAK RAJGOR wrote:

Thank you for your response. "Informal" as in not a written agreement. I believe most Husband and Wife partnerships would be informal.

Again, you are probably on the wrong foot. It is unlikely that you have a partnership for tax purposes. More likely joint investments. This is sort of basic stuff that your accountant will be able to advice upon. The advice given will be fundamentally different depending upon the precise structure of your arrangements.
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Hallerud at Easter
By DJKL
31st Aug 2020 12:44

Do the existing investment properties have pregnant gains?

Is there lending secured against these properties?

Just two of the myriad questions that will need answered. For such matters , especially when considering CGT, future IT, possible IHT and maybe SDLT (VAT also being an outside bet if commercial property ) chatting everything through with an accountant is the way to go.

Often clients think they want to visit somewhere but it turns out , after chatting with their accountant, that they would get a far better experience visiting somewhere else, this could be one of these cases.

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Replying to DJKL:
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By DIPAK RAJGOR
31st Aug 2020 12:50

None of the four properties have any borrowings. Husband, wife and son have no liabilities. My query has now been answered by a lawyer and I wish to thank you for your input.

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Replying to DIPAK RAJGOR:
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By Matrix
31st Aug 2020 12:53

What is the answer? Given you have now asked 10 questions on here now is your opportunity to give something back.

Advice - noun
Advise - verb

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Replying to DIPAK RAJGOR:
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By DIPAK RAJGOR
31st Aug 2020 13:18

A

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Replying to DIPAK RAJGOR:
My photo
By Matrix
31st Aug 2020 13:20

DIPAK RAJGOR wrote:

Thank you for your obsession with me!
I ask questions not answer them!
English is my second language.
How good is your Hindi?
Have a great day!

Well I hope you have understood the lawyer’s advice then.

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Replying to DIPAK RAJGOR:
Psycho
By Wilson Philips
31st Aug 2020 13:48

I trust that you will follow the advice and that we will not hear from you again.

I (and others) were merely pointing out, in a non-confrontational manner, the correct spelling of the form of the word. If you cannot accept such constructive criticism in the spirit in which it was intended your exit from this site will not cause anyone any distress.

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Replying to DIPAK RAJGOR:
Psycho
By Wilson Philips
31st Aug 2020 14:36

Unfortunately we no longer have the option to hide content from specified users. You present a good case for reinstatement of the facility.

But you are quite right - life is far too short to worry about ingrates like you.

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Replying to Wilson Philips:
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By DIPAK RAJGOR
31st Aug 2020 14:48

No need to hide any content. Just don't read the replies! Simple!!

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Replying to DIPAK RAJGOR:
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By Paul Crowley
31st Aug 2020 14:15

DIPAK RAJGOR wrote:

Oh yes, I did. He told me not to bother with trolls on this site again!

Did he advise that it really is time to get an accountant and useful to answer his questions?

I suspect that was the true advice and your statement is misleading

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By Paul Crowley
31st Aug 2020 14:25

I note that you do not understand the 'thanks' button
I have therefore pressed some for you

10 questions in a year, one deleted with Richard intervention

You appear to be the most regular user and deserve the user of the year award. Congratulations

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By Paul Crowley
31st Aug 2020 14:38

DIPAK RAJGOR wrote:

My wife and I have an informal property investment partnership with equal share and carry out this business in our personal names. Tax is paid via individual Self-Assessments. We now wish to add our adult son to the partnership. He has no employment and no earnings. We are happy to be jointly and severally liable for all undertakings. Our son will not be introducing any capital/funds into the partnership. We are happy split the assets equally amongst us.  How can this be implemented in the simplest way?   Your valued advise will be most appreciated.

For posterity

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By frankfx
31st Aug 2020 15:55

i was 'avin a gud day 'til this thread popped up.
Douglas Adams and a bag of peanuts may bring some sense to it all.
Where is a Vogon when you need one ?

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Replying to frankfx:
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By DIPAK RAJGOR
31st Aug 2020 17:19

How sad when a thread like this "tops you over"!
Have a lie down, chill out!

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Replying to frankfx:
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By Paul Crowley
31st Aug 2020 21:07

Hope you remembered the blanket in the Ford Prefect

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By Justin Bryant
01st Sep 2020 10:27

I have never ever criticised anyone's question on this site and rightly point out trolling and get (temporarily) banned for my efforts.

Here we have wanton trolling of a legitimate question and no suggestion of any ban(s).

This site really is becoming a troller's paradise (which explains the desertion of good quality posters over recent years that coincides with the arrival on this site of the people above).

Cue trolls...

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Replying to Justin Bryant:
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By Tax Dragon
01st Sep 2020 13:45

Wanderer's answers should be excluded from your criticism here, as I think s/he made sound observations. It's also true to say that - legitimate or not - the question is on the wrong forum. (Am I right that partnership deeds are reserved instruments? Not that I think there is necessarily a partnership here; I agree Wanderer's point about that.)

Other than that, surprisingly, in large part I tend to agree. Take the handbags away and no way is this a 40-post question. (The OP threw his fair share of toys... his reaction to my [entirely legitimate] advice v answer point was frankly bizarre.)

The forum has lost its way. My (less succinct, less clear than yours) musings about that this morning are on this thread: https://www.accountingweb.co.uk/any-answers/chargeable-gains-for-investm....

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Replying to Justin Bryant:
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By DIPAK RAJGOR
01st Sep 2020 16:11

Thank you Justin. All this "much a do about nothing" was simply a result of Wilson Philips, the first to comment on my post, getting irate because he saw me as seeking free advise. He told me to seek legal advise which I agreed with and took up his suggestion. What really irritated him and the others was me confirming I had managed to get free legal advise. But that was not enough for him and the rest who gleefully joined in the "carry on" If this was a paid service, I would have been more than willing to pay a fee. The rest was just a case of "what else shall be hit him with" Shame really.

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By frankfx
01st Sep 2020 14:24

JS

your comments welcome on this thread.

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Richard Hattersley
By Richard Hattersley
01st Sep 2020 17:26

With accusations of "troll" and a question which has gone off-topic, there is little reason to keep this thread going. This thread is now closed. I remind everyone to refrain from accusing others of being trolls or being confrontational.

As stated in the guide to Any Answers: AccountingWEB is a forum for anyone with an interest in accountancy to ask questions. But as one user noted: “If you intend to plan a course of action based on what you read in here, you should instead be taking professional advice.”

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