New Partner - tax issues

New Partner - tax issues

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My client is a four partner professional firm accounting to 31 March each year. The firm has been trading for 3 years. On 1 April a new partner will join the practice. I have assumed that the existing partners will carry on as normal, and that for the new partner, his previous sole trade will cease and he will go onto the starting year basis. But as an alternative, could the situation be written up as a merger in which case the new partner could be treated as a continuation as well. In such a scenario I believe that no continuation election would be required by the new partner?

Thanks in advance - sorry to do this in January!
Stormrider

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