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The partners in a retail jewellery business want to split up. The value of the stock of gold in the accounts at cost is considerably below market value.
The stock will be divided three ways and the partnership dissolved. One partner will use the gold in his existing wholesale business run in partnership with his wife. The other will use it in his new sole trader business and the third partner will keep it as an investment.
Is there any way for the gain on the stock of gold to be held over when it is transferred on dissolution of the partnership? Readers’ comments would be appreciated on this and any other way to structure this.
Query 20 460– Goldie.
Stock will be treated as transferred at open market value.
The starting point here is ITTOIA 2003 and references below are to that legislation. Section 173 deals...
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