A property owned jointly or in partnership does not necessarily mean that the rental profit or loss must be allocated in the same proportion as the underlying ownership of the property.
The owners can agree a different split, the proportion referring to profits and losses only and not to the capital received should the property be sold.
It would be advisable for there to be an agreement quite separate from the property purchase deed that confirms the proportion.
The agreement could accommodate any change in the owners’ circumstances on an annual basis and thus ensure that the personal allowance and different tax rates are used to the best advantage each year.
Please register or log in to add comments.
There are not comments added