This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Capital Introduced

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

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. :)

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

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.

Return to “Income Tax”