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The partners in a farming firm have carried through the procedure which has given that firm limited liability (still as a partnership); observing that they have 'converted' the business to a new form. Apparently this was done without professional advice, but the correct procedure was followed to set up the new entity. I am doubtful as to whether the income, taxation and capital gains can be dealt with other than on the basis of cessation of the old business with a commencement of the new, which is to be taxed as a partnership.
The partners in a farming firm have carried through the procedure which has given that firm limited liability (still as a partnership); observing that they have 'converted' the business to a new form. Apparently this was done without professional advice but the correct procedure was followed to set up the new entity. I am doubtful as to whether the income taxation and capital gains can be dealt with other than on the basis of cessation of the old business with a commencement of the new which is to be taxed as a partnership. Likewise I have not identified any specific legislation for VAT or stamp duty. It appears that HMRC do not offer any guidance directly relevant to such a change but possibly some readers have had this issue to consider and might comment.
Any general advice on the implications and potential pitfalls (if any)...
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