New queries: Partnership ER; Basis of assessment...

Partnership ER

Our client is a five-person professional partnership which has grown significantly over the years. Partnership trading profits are shared equally between the partners.

However the two original partners (A and B) each have a 50% interest in the capital profits arising from the premises which is used entirely for the purposes of the partnership’s trading business. The property is partnership property and is shown as such on the balance sheet.

A has been a partner in the business for many years and is looking to retire on his 60th birthday early in 2014.

At a recent meeting to discuss the accounts we learned that a buyer has been found for the premises. A and B believe they have got a good offer price from the buyer who is very keen to take possession as soon as possible and the deal...