Fallout from partnership /tax problem

[Georgemaitland]

I have retired from a business partnership.The accounts were and remain a mess,especially the balance sheet.
I was making most of the money so declared a large income for the final year which was 75% of the partnership profits,but only took a half of it out in drawings, and incurred a huge income tax bill.
The P&L was agreed but the balance sheet not,so I’ve ended up having paid a lot of tax on profit which remains within the business in my capital account,and which my erstwile partners are refusing to pay.
I anticipate some expensive and drawn out litigation,is there a way I can cut my tax bill so I only pay based on what I’ve received,and not what is the retained capital which is in dispute and still retained in the business?

[bd6759]

Partnership profits are split (and taxed) in accordance with the partnership agreement. If that gives you 75% of the profits, that is what you are taxed on.

[Georgemaitland]

But I have only received half of my profit share and the rest is in dispute with my former partner.Can I ask the revenue to allow me pay the tax on the profit I’ve personaly banked whilst the dispute with my erstwile partner over the balance,which is contained in my capital account, is resolved?

[Georgemaitland]

Anybody with any suggestions?

[bd6759]

Consult a solicitor. This is a legal problem, not a tax one.

[AGoodman]

I can see there is a tax issue there but I'm afraid I can't see any way to avoid tax on your allocated share of profits (that doesn't mean there isn't some provision somewhere but doubtful).
Worth asking a tax lawyer or accountant to investigate it properly