Sally and Dan owned their own home and were looking to invest in a second property.  They were planning to buy the next property in their own name, until they spoke to their friend who recommended they take advice from an accountant and a lawyer about structures.  After taking advice they realised they could protect their family home by putting it in a trust and could use a Look Through Company to hold the rental property, which gave them some tax benefits.

Options for property ownership include:

Personally – either jointly or as tenants in common (in set shares, eg 50/50).

Companies –Look Through Companies or standard companies.  These provide limited liability and can have some tax benefits.

Trusts – Trusts ring fence assets and protect them from creditors, for example if you are in business.  Trusts are set up so that trustees hold the property on behalf of the beneficiaries (the people who are entitled to benefit from the trust).

Partnerships – including Limited Partnerships.  Limited partnerships give some limitations on your liability and can give tax benefits.

Whether or not a particular entity or mixture of entities will benefit you is entirely dependent on your situation.  Professional advice from a lawyer and accountant is crucial and can ultimately save you money and give you possible tax benefits.