I have just read in a property book that it is advantageous to actually buy the property in both our names to take advantage of all tax allowances and levels. It states that a partnership is automatically formed when this happens and any income can be distributed to either party to take advantage of tax levels as long as they are dealers in the property. Can you confirm if this is true and if so do we need a written agreement or can we allocate income from the business in the most tax efficient way at the time?
Again, if true would you recommend both our names going on the purchase?
Many thanks, ***** ***** we will proceed then in my partners name to take advantage of her lower tax levels. I think if we get to the point where she is also on the higher tax rate we will look to form a Ltd company