Alan Pink highlights danger areas with partnerships set up predominantly or wholly to hold investment property.
Very often a property portfolio held by a close-knit group of people, typically members of one family, will be referred to as a ‘partnership’ and will be accounted for as such in the annual tax returns.
Is it a partnership?
However, in many such cases there has to be a real question mark on whether the arrangement really qualifies as a partnership. The term ‘partnership’ is famously defined in Partnership Act 1890 as ‘the relationship which subsists between persons carrying on a business in common with a view of profit’.
Whilst the Partnership Act 1890 definition doesn’t specifically refer to a trade, there is a general view,
