2004 budget and property partnerships
Question I have read that the property tax rulings around property partnerships has changed as a result of the last budget. Is this true?
All my property is owned 50:50 for rental income purposes between me and my wife, so do I now need to make a declaration of this effect to the Inland Revenue?
The old rules (based on ICTA 1988 sec 282) say that jointly owned property between a husband and wife is assumed, for income tax purposes, to be owned 50:50.
This is unless it is actually owned in different proportions and a declaration is made to that effect to the Revenue.
The 2004 budget changed this ruling with respect to jointly owned shares in a close company only, where income tax will be applied according to actual ownership.
Other assets, like property, are not affected, and the old rules continue to apply.
What this means is that you do not need to make a declaration if your property is jointly owned on a 50:50 split for income tax purposes.
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