Commentary

A6.406 Particular situations—jointly owned let property, partnerships, deceased taxpayers, close companies and company groups

Administration and compliance

A6.406 Particular situations—jointly owned let property, partnerships, deceased taxpayers, close companies and company groups

A6.406 Particular situations—jointly owned let property, partnerships, deceased taxpayers, close companies and company groups

Jointly owned property

HMRC has indicated how it will proceed when it wishes to make enquiries into income from co-owned property where the letting does not amount to a partnership1.

Where a property is let jointly the self assessment income tax return rental pages require disclosure of the contact details of the party responsible for holding the records in relation to the letting (the 'record keeper'). This disclosure is made by the taxpayer submitting the return and HMRC do not require any confirmation that the consent of the person whose details are being disclosed has been sought.

On the assumption that the record keeper takes responsibility for the administration of the letting, HMRC in the first place normally deal with the matter as part of an enquiry into the return of the record keeper. If the enquiries show that the returns of other co-owners need to be amended then a separate notice of enquiry is given to them. If the time limit for giving such a notice has passed, HMRC consider that they can make 'discovery' assessments on the other co-owners (see Division A6.7).

Where a partnership exists and the jointly owned property constitutes partnership income, the profits or losses arising from let property should be included in the partnership return which may subsequently be subject to enquiry2.

Partnership returns

An HMRC officer may make an enquiry into a partnership return under the same conditions and time limits as described

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