Ring Fencing - Two IP but one Additional Owner

[AshAuck]

Hi,

I am in a situation were we have two investment properties but the owners of one property are A (50%) and B (50%). But the owners of the second property are A (1/3), B (1/3) and C (1/3).

What are the options of ring fencing to consider the two properties as a single portfolio? I am interested form the perspectives of owners A and B.

Thanks,

Ash

[Rosco]

Get some expert advice!

It depends on who owns the two properties. If just a partnership of A and B, then half the property profit or loss will flow to A for example, they might get $5,000 profit as A's share.

Then A will get 1/3 of new property. So if it made a 3k loss, A would get 1k loss.

If A is on the portfolio option, then 5k profit would be offset by 1k loss, taxed on 4k overall profit.


If normal company, Trust or other entities involved, it would give different outcomes
Ross