CGT implications of ceasing business partnership
Hi, i'm hoping someone on here can help, apologies if this has already been covered but i was unable to find the relevant link.
Basically i have a business partnership which i am looking to run as a sole trader business from 6 April 2012. Currently there are 2 partners, my wife and I. There is no partnership agreement.
My understanding is that this will constitute a transfer of business assets from my wife to I, but that this is exempt for CGT purposes. My question is whether i have to file anything with HMRC regarding capital gains tax, or whether this is not required as the transfer is exempt. (there would be no gain anyway, as the assets are worth less than we paid for them).
Secondly, is the entry in the partnership accounts simply Dr my capital account and credit my wife's account?
I plant to inform the revenue of the change in the structure of my business to a soletrader, as i know this impacts my income tax situation. If there are any other considerations i need to bear in mind then please do let me know.
Any help greatly appreciated.
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