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Property Losses in partnership

Property Losses in partnership

If client is a partner in 2 property partnerships - 1 makes a profit, 1 makes a loss

Can they offset them on their self assessment tax return or not as they are property rental companies?

Also, can a partnership be one of the partners in an LLP?


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By ACDWebb
24th Apr 2012 13:53

I believe that the answer will be

No they cannot.

Look at ITTOIA s264, s847 & s859

s264 refers to the UK property busines for an individual as "every business which the person carries on for generating income from land in the United Kingdom"

ss847 & 859 deal with special situations on partnerships.

s847 says  - persons carrying on a trade in partnership are referred to collectively as a “firm”. and then extends to cover property business

s859(2) says that s264 applies to in relation for firms to ring fence property transactions to the firms property business; and does not include transactions in the property business of a partner of the firm.

An individual with personal UK, Overseas, and Partnership Property businesses cannot set losses from one against profits from another, and I believe that ss84 & 859 will operate to keep different property partnerships separate as they are different "firms"

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By occca
24th Apr 2012 17:00

Thank you


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