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Where Taxpayers and Advisers Meet

Capital Loss on dissolution of partnership

kulen
Posts: 2
Joined: Wed Aug 06, 2008 3:44 pm

Postby kulen » Thu Oct 19, 2006 6:50 am

News agent carried on as a partner ship business had to be closed down for not renewing the lease .

Due to this goodwill & origonal lease payment as an asset. what is the tax position of this loss.

thank you for your assistance.

Simon Sweetman
Posts: 1690
Joined: Wed Aug 06, 2008 3:11 pm

Postby Simon Sweetman » Thu Oct 19, 2006 11:17 pm

The tax position is that the original lease payment and goodwill were acquired by the partners, and so the loss belongs to them proportionately. It is a CGT loss and can be carried forward against future capital gains.


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