Partnerships Flashcards
(6 cards)
1
Q
Partnerships
The Partnership Act 1980 Defines a Partnership as:
A
‘A Relationship Between Persons in Business With a Common View of Profit’
2
Q
Partnerships
Partnership Agreements Should Contain Details of:
A
- How Profits are Shared;
- Rules on Admittance and Retirements of Partners;
- Conduct of Partners;
- Ownership of Assets.
3
Q
Partnerships
A Nominated Partner is Responsible for:
A
- Registering the Partnership With HMRC;
- Filing Annual Partnership Tax Returns.
4
Q
Partnerships
What is Charged on Late Submission?
A
A £100 Late Filing Penalty to Each Partner.
5
Q
Partnerships
How Long Must Partnership Records be Retained?
A
5 Years and 10 Months Following Each Tax Year.
6
Q
Partnerships
What Steps Must be Followed When Assets are Transferred Between Partners?
A
- Calculate Chargeable Gains for Each Partner on Their Fractional Shares at Market Value
- Gains Accruing to Partners Giving up the Asset are Immediately Charged to CGT
- The Gain Accruing to the Partner Receiving the Asset is Notional and Carried Forward
