50/50 Partnership buyout
Posted: 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
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