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The three partners in a trading partnership are a man, his wife, and a limited company in which the man and his wife are the sole directors and shareholders. None of the partners has provided capital to the partnership. The company's share of the partnership profits year on year is accumulating, and the total to date is represented by its current account as shown in the partnership's balance sheet. The company has no activity other than as a member of the partnership; it pays nominal directors' salaries, and has only minimal overheads (the Companies House filing fee, for example).
The three partners in a trading partnership are a man his wife and a limited company in which the man and his wife are the sole directors and shareholders. None of the partners has provided capital to the partnership. The company's share of the partnership profits year on year is accumulating and the total to date is represented by its current account as shown in the partnership's balance sheet. The company has no activity other than as a member of the partnership; it pays nominal directors' salaries and has only minimal overheads (the Companies House filing fee for example).
We are happy that a trade is being carried on (by the partnership) but we are uncertain as to whether the company is carrying on a trade so as to fall within the meaning of a trading company in TCGA 1992 Sch A1...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
