Multiple partnerships - only one balance sheet

Multiple partnerships - only one balance sheet

Didn't find your answer?

I recently took on a husband and wife partnership. After receiving the handover information from the previous accountant I was a little puzzled as to how this was structured and wondered if this arrangement was normal / acceptable to HMRC. Basically:

The H&W have three shops each operating for tax purposes as a separate partnership (with seperate UTR number). The accounts however show 3 x P & L sheets, one for each partnership yet a single combined balance sheet. The Partnership Tax Return for each of the partnerships include the P&L items and CA claims yet no balance sheet.

Profits and losses from each partnership have been incurred and dealt with accordingly in each partnership however the most recent partnership (2011) generated significant losses which were rolled back three years under ITA2007 S72 relief. Is this correct as essentially this is not a new trade?

I have never seem three separate partnerships with the same people for each retail premise.

I welcome any comments

Replies (1)

Please login or register to join the discussion.

By johngroganjga
12th Sep 2013 13:45

Well it's perfectly acceptable, but it's all just over-elaborate and unnecessary.  I would just be streamlining at all at the first opportunity.

I won't comment on the loss relief claim, but if you weren't involved with it, and HMRC have accepted it, do you need to worry about it?

Thanks (0)