Please, can property in partners name be moved out of the business and the partners charge business rent
Fine by me but thanks for checking.
What are you trying to achieve by doing this?
Not sure is the client's preference -since the property is in the partner's name, they thought it should be moved out of the business books and rented to the business
When you say partner's name do you mean in name of one partner or in name of multiple partners?
Is it a business asset used in partnership trade?
It is actually a partnership (unincorporated), the partners are couples and the property is in their names but has always been in the books of the partnership as assets of the partnership, now they want to remove it from the partnership books and just charge rents.
I meant the two partners names
What is the property, is it residential that is let to third parties, location like factory/office where their trade takes place(If they have a trade and not just a business)?
When you say couples do you mean a couple (two partners) or more than a couple (at least 4 partners)?
sorry meant a couple - 2 partners, it's more like factory/office where their trade takes place (classed as Freehold property in their books)
What will that achieve? What about the ER associated disposal rules?
My guess is that the partners are unaware of s783BO ITTOIA 2005 and haven't begun to think of any other tax effects.
All sorts of bad tax planning can happen when no-one involved in formulating the planning knows the rules.