Sarah Bradford explores the tax treatment of jointly-owned property and how to determine whether a partnership exists.
Property may be owned jointly for all sorts of reasons. Where jointly-owned property is let out, the way in which the rental income is taxed depends on whether there is a partnership and, if not, the relationship between the joint owners.
The first question to ask is therefore: ‘Is there a partnership?’
Property partnership?
Owning property jointly does not in itself create a partnership, and in most cases joint letting will not amount to a partnership.
A partnership is defined in the Partnership Act 1890, s 1(1):
‘Partnership is the relationship which subsists between persons carrying on a business in common with a view to profit’.
The Act also provides: <>
