Consortium buying in London - Tax implications?

[Karlos13]

Hi,

I am one of eight people in the process of setting up a consortium with a view to buying property. We are looking at a number of jurisdictions, the first being London. We have one property that we have put a deposit on and are in the process of finalising the sale. We have a legal agreement in place that binds all the members of the consortium, but have not registered a company or partnership in Ireland.

From a tax point of view, what is the most efficient way for us to purchase the property?

Should we just purchase the property in each individuals name or should we purchase it in the name of the consortium based on the agreement we have in place. If we were to do it in the name of the consortium, would we need to register a company or partnership to do so or is the agreement we have in place enough?

Another complication is that we have been informed that the maximum number of names that can go on the title deeds of a property in London is four and we are eight. Can anybody verify that this is the case?


Would it be correct to say that we must obtain the finance for the purchase in whatever name (holding) we buy the property in?

Thank you.

 

[MOB]

I am sorry if this sounds a little mean, but it doesn't sound like you have enough knowledge to be involved in a non professionally managed property syndicate. You really need good professional advice; and quickly.

 

[JoeyB]

Hi Karlos. I agree with the previous two posts. You shoudl get sound legal and tax advice advice firstly. Otherwise you may find that any gains you make on your investment will be lost to the taxman.

Contact the Institute of Charted Accountants www.icai.ie. They have a list of all regulated accountants.

A group I deal with invested in a property development syndicate in Bulgaria. They shopped around for tax advice and ended up dealing with a capable mid tier firm that charged a fraction of the price of the larger firms.

 

[RainyDay]

You shoudl get sound legal and tax advice advice firstly. Otherwise you may find that any gains you make on your investment will be lost to the taxman.

Contact the Institute of Charted Accountants www.icai.ie. They have a list of all regulated accountants.

Accountants are not qualified to give legal advice and not all accountants are qualified to give tax advice.

 

[JoeyB]

Sorry RainyDay.

I never said that accountants were qualified to give legal advice and neither did I say that all accountants were qualified to give tax advice.
Further to this I assume that some people are qualified to give tax advice regarding certain topics only.

However I did put them onto a site where they can get details of regulated accountants in ireland so if incorrect advice is given then a person should have some comeback. This is purely a pointer. It is up to them to make their own decision at the end of the day.

 

[RainyDay]

I'd have thought that the would be the best starting point for a tax professional.