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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4338
Experience:  FCCA FCMA CGMA ACIS
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I own farm land 100% in my name that a company is negotiating

Customer Question

I own farm land 100% in my name that a company is negotiating to lease for Solar PV for 25 years. I pay higher rate tax. How must I arrange my affairs so that i still own say 98% of the land but share the profit for tax purposes equally (1/3 each) with my Sister, and Father who both pay basic rate uk income tax.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to be able to help you with your question.
The safest way to do this from an income viewpoint is to transfer the ownership into a joint tenancy so you will each own a third. Then only 33% the rental will fall to you.
Alternatively form a company, transfer the land to the company and pay your wife a salary from the company to reduce the rental income to zero.
In theory you could allocate part of the income to your sister and father if they manages the property, but this is fraught with problems with HMRC over the level of support she provides.