Lump sum payment to construction partner, best way to structure

Disjoint

Hi all, bit of a random one, but am sure there is a straight forward answer on this one.

I am doing a real estate project and financing it all, I have a partner on it. We did a few projects in the past together where I simply paid him a salary and he paid his taxes on it. On this one, I wanted to make it more interesting to him by providing most of his payment linked to how we do when we sell it.

In other words (figures completely made up): at the end of the project, assume I sell for £500k, I have £300k of costs I give him £100k of profit - but I want to make sure I can deduct the 300k of costs plus the 100k I give to him when I file with HMRC. 

What would be the most tax efficient way for me to do this to minimize his tax bill, he can lock the cash in a structure as he doesn't need it at present. Is there a relatively easy way to do this? Potentially, and I suggested to him, that I'd be happy to roll his profit on this project as equity into a future project with him, any advantages to doing this?

I know, I should talk to a tax accountant. But if there is no real advantages to just paying him the lump sum and him declaring it as income then I'd rather know from the get go. But if creating a holding and then paying himself slowly dividends out of it is a better way, would like to hear about it.

Thank you in advance!

Edit: reason I mentioned the rolled equity, at present I've only done two real estate project and it's under my name. But potentially I'd open a structure and then I would put his profit as equity in the structure and I would contribute alongside for future projects.

Jeremy535897

The only realistic way would be to incorporate, and you would need to take proper advice on that.