.png)
.png)
ROB DURRANT-WALKER looks at the capital gains implications for partners’ profits
KEY POINTS
- Who owns the property?
- Consequence of selling partnership property.
- Bringing in a new partner.
- Transferring a personal asset into the partnership.
In tweaking the profit shares of partners in the accounts that were recently prepared did you give thought as to whether you inadvertently created an immediate or future capital gains tax issue?
This article explains how that can happen but is also useful as a review of basic partnership capital gains tax issues.
Whether our opening question is problematic firstly turns on whether property is genuine partnership property or is property that happens to be owned personally by the partners but outside the partnership.
Partnership property – or not
The Partnership Act 1890 s 20 states:
‘All property and...
Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
