Corporate partners

My client is a professional partnership generating profits of £400 000 per annum. There are three partners A B and C sharing profits 50% 35% and 15% respectively.

Partner A is financially sufficient and does not need to draw more than £40 000 plus tax per annum. Partner B’s drawings including tax are in the order of £100 000 per annum. Partner C draws his full profit share each year.

Could partners A and B form limited companies which would take over their individual partnership shares? Partners A and B would then provide their professional services through their individual companies.

The partnership would then be a partnership between A Ltd B Ltd and C.

This would allow A and B to take whatever level of drawings they required by way of dividend or salary from their companies and would also allow them to deal with their...