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Where Taxpayers and Advisers Meet

Capital Introduced

Markp9631
Posts:1
Joined:Thu Dec 07, 2023 8:10 pm
Capital Introduced

Postby Markp9631 » Thu Dec 07, 2023 8:14 pm

I have a Partnership just me and the wife ,we introduced funds to start the business,we have had a good year and profits are good ,can we take out some of the money we put in as capital so we can reduce our tax bill for year 2022-23
Any advise helps
Thank you

Benthal
Posts:3
Joined:Fri Dec 08, 2023 1:31 am

Re: Capital Introduced

Postby Benthal » Fri Dec 08, 2023 1:41 am

Hi Mark,

I think you need to specify what does 'put in as capital' exactly mean.
Because -

if you invest some equipment for trade purpose, certainly it will save your tax bill by capital allowance.
if you withdraw your profit and invest in exchanged market, it's another story and may not reduce your tax.

Or you can think about other incomes (such as employment, interest etc...) to use your or your wife's personal allowance more efficiently.
Such as spill the profit from your business in a % that use up both you and your wife's personal allowance, instead of use up yours but waste your wife's.

Hope this will help. :)

pawncob
Posts:5083
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Capital Introduced

Postby pawncob » Fri Dec 08, 2023 10:31 am

You can take the money out, but it won't change the tax due.
With a pinch of salt take what I say, but don't exceed your RDA

bd6759
Posts:4239
Joined:Sat Feb 01, 2014 3:26 pm

Re: Capital Introduced

Postby bd6759 » Sat Dec 09, 2023 11:48 am

Partners are taxed on the entire profits of the business, not just the amounts they withdraw.


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