My clients are an unmarried couple who together own and run a small restaurant in partnership. They are considering incorporating the business but are concerned at the effect that this will have on the IHT business property relief position particularly because they believe that they currently own the restaurant premises personally outside the partnership. What are the issues that they need to consider?
Answer
The first thing that should be reviewed here is whether or not the restaurant premises are indeed owned outside the partnership or whether they are in fact a partnership asset. In the case of a partnership between only two people and where all the assets are owned jointly the difference between these two positions can be very subtle. Of course ...
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My clients are an unmarried couple who together own and run a small restaurant in partnership. They are considering incorporating the business but are concerned at the effect that this will have on the IHT business property relief position particularly because they believe that they currently own the restaurant premises personally outside the partnership. What are the issues that they need to consider?
Answer
The first thing that should be reviewed here is whether or not the restaurant premises are indeed owned outside the partnership or whether they are in fact a partnership asset. In the case of a partnership between only two people and where all the assets are owned jointly the difference between these two positions can be very subtle. Of course ...
If you are not a subscriber, subscribe now to read this content.
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