partnership tax

partnership tax

Didn't find your answer?

when partners capital accounts are both negative and of different amounts, what are the tax implications?

Replies (1)

Please login or register to join the discussion.

avatar
By nogammonsinanundoubledgame
25th Oct 2011 10:29

Not a lot

If there is interest paid through the partnership on borrowings then there may be a disallowance of some of the interest through the trading results, on the grounds that the interest has been paid in part on borrowings used for the private expenditure of the partners.

See

http://www.hmrc.gov.uk/manuals/bimmanual/BIM45705.htm

et seq.

If you are clever you can usually argue down the adjustment quite significantly, if not eliminate it altogether.

With kind regards

Clint Westwood

 

Thanks (0)