New queries: 20 February 2020

Parting ways; Dependent relative relief; Multiple dwellings relief; Charitable purposes

Parting ways

Availability of averaging to a farming partnership.

I have a client that is a husband and wife farm partnership and 2018-19 is the first year for their partnership. Prior to this my clients were trading as a four-partner partnership but due to circumstances they have decided to cease the original partnership and continue their trade as two separate entities.

What I would like to know is whether two or five year averaging is available to the partners in the final year of the old four-partner partnership? I am aware that averaging is not available in the year of starting the trade (or joining a partnership) or in the year of cessation of trade (or leaving a partnership). However it is clear that the farming trade has continued...