Write off Partnership losses

[Gunner84]

Hi Everyone

I have two partnerships, one is controlled by three individuals and the other is controlled by two of the same people (i.e. one of them is not involved in this one).

The partnership controlled by the two persons loaned the three persons partnership funds which it has now written off. Ordinarily they wouldnt worry about the effects of this as they control both however this will have an effect on the third persons tax. Am i right in thinking that the loan written off in the two man partnership would be a trade loss and the funds effectively received in the three man partnership taxable on the three of them. I.e. no net effect for the two partners and the third partner would be taxable on 1/3 of the loan written off.

Thank you for your help

[pawncob]

read this:
http://www.hmrc.gov.uk/manuals/cfmmanual/cfm36000.htm

then decide which particular scenario suits you best.