The following Tax practice note Produced in partnership with Charles Goddard of Rosetta Tax provides comprehensive and up to date legal information covering:
The simplest form of joint investment in property is for the investors to own the property jointly. While this is relatively rare in a commercial context, where investors prefer to establish a vehicle such as a partnership or a company to act as a joint venture vehicle, it is still the most common form of joint investment. Most investments by individuals will take this form.
Contractual joint ownership can take many forms, such as:
where each party has a direct legal interest in the asset (see Practice Note: Establishing a beneficial interest (joint ownership))
where a trust (whether express or implied) is formed over the property, so that the property is held by trustees on behalf of beneficiaries of the trust (see Practice Note: Trusts of land—property)
where an implicit partnership arrangement exists (see Practice Note: Forming a general partnership and continuing obligations)
This Practice Note considers each of these forms of joint ownership, their direct tax (ie income tax, corporation tax and capital gains tax (CGT)) treatment and the tax implications for the contracting parties.
References in this Practice Note to CGT are to capital gains tax for individuals and trustees and to corporation tax on chargeable gains for companies subject to corporation tax.
These forms of contractual joint ownership have different treatments for the purposes of VAT and SDLT, which are outside the scope of
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Coronavirus (COVID-19): The guidance detailing normal practice set out in this Practice Note may be affected by measures concerning process and procedure in the civil courts that have been introduced as a result of the coronavirus (COVID-19) pandemic. For guidance, see Practice Note: Coronavirus
Who is a fiduciary?There is no comprehensive list of the relationships which give rise to the existence of fiduciary duties under common law. Some relationships are automatically fiduciary, eg those between trustee and beneficiary, solicitor and client, principal and agent, business partner and
An ad hoc arbitration is any arbitration in which the parties have not selected an institution to administer the arbitration. This offers parties flexibility as to the conduct of the arbitration, but less external support for the process. It can be quicker than institutional arbitration but not if
What is quia timet relief?Injunctions are generally awarded where a party has already suffered a wrong. For guidance on injunctions generally, see Practice Note: Injunctions—guiding principles. However, an injunction may be sought before a party's rights have been infringed on the basis that they
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