Flashcards in Income Tax - Partnership Deck (4)
How is partnership tax calculated?
It is calculated very similar to Employment Income.
Commencement and cessation of trade treatment for new partners and old partners?q
New partners joining will be treated as commencing a new trade.
Old partners leaving will be treated as ceasing a trade.
What are the partnership loss reliefs for EXISTING partners and NEW partners?
EXISTING partners can claim terminal loss relief IF ONLY they are leaving the partnership.
New partner joining can claim the loss relief for the losses made for the last 4 years of trading.