Where Taxpayers and Advisers Meet

50/50 Partnership buyout

gammyleg
Posts: 1
Joined: Sat Feb 10, 2018 3:56 pm

50/50 Partnership buyout

Postby gammyleg » Sat Feb 10, 2018 4:09 pm

Hi,

First post and not all that tax-savvy I'm afraid.

My friend is in the process of being forced out of a simple 50/50 partnership as the partnership has turned VERY toxic. Once final sums are agreed my friend should hopefully walk away with approx £150k ( Not insubstantial but way below the true value of the business )
He would like to immediately reinvest this money to buy a similar business that is currently for sale.

Could someone advise on the tax implications of the monies received from the buy-out, and whether any of this can be offset against the purchase of the new business?

Hopefully this question has not been the tax equivalent of how long is a piece of string.

Thanks

Gammy

pawncob
Posts: 4041
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: 50/50 Partnership buyout

Postby pawncob » Tue Feb 27, 2018 12:13 pm

Can't advise on tax position without full info on what's being sold, for how much, and what it cost.
With a pinch of salt take what I say, but don't exceed your RDA

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