Partnership between father and son
Net assets £400 (all trading assets).
Capital accounts, Father credit £600, son debit £200.
Partners share all profits equally
Son dies.
What entries go onto his IHT form?
Is it 50% * 400 (covered by BPR) then a £200 debt to father?
I am concerned that the £200 is non deductable for IHT. There is of course no p’ship agreement.
The reason I am concerned is that if we reverse the situation and father had died he would have had 50% * 400 (covered by BPR) , and we would have omitted to recognise the debt due from son.
Mind going blank on this??