New queries, issue 4258

Brotherly love

My new clients are two brothers who traded in partnership until 31 December 2008. They then traded individually (one in partnership with his wife) and have sought advice on a number of taxation issues. The splitting of the business was amicable.

The brothers separated the farm working assets on a 50:50 basis. Capital assets involved within the farm comprise two dwellings suitable as farmhouses cottages which are let agricultural buildings a barn for development and 60 acres of agricultural land (some of which is used for livery).

To my surprise we find that the ownership of these capital assets remains on a 50:50 basis and this has been the case for a good number of years.

My concern is to attempt to obtain transfer of ownership in the various property categories such that each brother owns his own assets outright. Even the premises used...