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Partnership rules and timeline

3 min read

Partnerships are currently out of scope for MTD for Income Tax. However, there is a critical distinction between a formal partnership and simple joint ownership.

Joint Ownership is not a Partnership

If you and your spouse jointly own a buy-to-let property, you are joint owners, not a partnership. You are in scope of MTD individually if your share of the gross rents pushes you over the threshold.

A formal property partnership typically has a written partnership agreement, a joint bank account, and a joint VAT registration. These are out of scope for now.

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