soletrader to partnership

[steph123]

I have a sole trader with 30 April 2010 Year End. A new partner joined on 1 May 2010 and accounts have been prepared to 30 April 2011.



I assume that the original sole trader will show the profit for year ended 30 April 2010 on his personal tax return and the new partner will show 11 months profit from 1 May 2010 to 31 March 2011 and then will have overlap relief in future years. Is this correct?



HMRC have issued a 2011 Tax Return for the partnership. Should the return be completed with 11 months figures – 50% being shown to the new partner? Does the original soletrader show 50% on his partnership pages & then make an adjustment so he is not taxed on these profits in the 2011 tax year?

[pawncob]

http://www.hmrc.gov.uk/manuals/bimmanual/bim72200.htm

[King_Maker]

It is 5 April 2011 rather 31 March 2011.