Tax advice of the week: Transfer property to an LLP

published 22 October 2010

The taxman is insistent. When it comes to income from investments, whether from shares or a rental property, you should pay tax on the income in proportion to your ownership of the asset, says Tax Tips & Advice. So is there a way round this? How about, for instance, if you own a rental property with your spouse and want them to receive the income because they pay tax at a lower rate?

The simple solution is to transfer your share of the property into your spouse's name. But this is "cumbersome" if you wish to vary the income year to year, you may not wish to transfer all your assets to your spouse. One way of allowing you to allocate the income as you wish, but retain 50/50 ownership, is to transfer the property to a Limited Liability Partnership (LLP). LLPs can divide profits as they see fit, without any regard to who owns what (see BIM72115).

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.