partnership cessation

[tom 7000]

Barney and Betty are partners and make accounts to 30 June each year. On 31 May 2011 Barney and his wife Betty decided to end their partnership as they were getting divorced. Betty left and Barney stayed on to run the business as self employed. He is going to make his s/e accounts up to 30 April 2012.

So I have


2010/11 - partnership accounts to 30/06/10
2011/12- partnership accounts to 31/05/11
2012/13- self employed accounts to 30/04/12

Is that right or are there some sort of opening year rules for the self employed bit and the first 10 months have to go into 2011/12 too.

Are there partnership overlap profits to release anywhere

I have suggested he become a company on 30/04/12 ( so any CGT on goodwill is a year away as Barneys skint due to the divorce)

Thanks for your help

Tom
> its only easy if you know the answer ;o)

[seikialice88]

Thanks you for sharing

[jbs1]

Hi Tom,

I was delighted to see your post, this is exactly the query I wanted to clarify.

Continuing with your example, when it come to Barney's 12/13 self assessment return will it have 2 entries (1) His share of the partnership profits up to 31/05/11 and (2) His sole trader profits.

Also as Betty is leaving the partnership, assuming she will be compensated for her share of the business. If she receives more than she has invested in the business will she be subject to CGT

I would greatly appreciate your thoughts

Thanks
Jag

Barney and Betty are partners and make accounts to 30 June each year. On 31 May 2011 Barney and his wife Betty decided to end their partnership as they were getting divorced. Betty left and Barney stayed on to run the business as self employed. He is going to make his s/e accounts up to 30 April 2012.

So I have


2010/11 - partnership accounts to 30/06/10
2011/12- partnership accounts to 31/05/11
2012/13- self employed accounts to 30/04/12

Is that right or are there some sort of opening year rules for the self employed bit and the first 10 months have to go into 2011/12 too.

Are there partnership overlap profits to release anywhere

I have suggested he become a company on 30/04/12 ( so any CGT on goodwill is a year away as Barneys skint due to the divorce)

Thanks for your help

Tom
> its only easy if you know the answer ;o)