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Two partnerships have merged on a day that corresponds with neither of their accounting dates. Advice is required on the effect of this on the basis periods and the impact of the introduction of corporate partners into the merged business
Our clients Michael & Partners traded as heating and environmental specialists. On 1 February 2013 they merged with Peter & Partners another firm of environmental specialists concentrating on air conditioning. Both have traded as general partnerships for many years.
The new business entity is a limited liability partnership (LLP). The members of the business are the original partners of the two general partnerships and two family companies which were included from 1 February 2013.
Michael & Partners made up their accounts to 31 May. Peter & Partners made up accounts to 30 June. Both partnerships are preparing accounts to 31 January 2013 immediately prior to the merger although the note in HMRC’s Business Income Manual at BIM72430 indicates that the use of a temporary date need not trigger the change of accounting date rules.
It is proposed to make up the LLP accounts to...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
