Partnership Investment Properties

Partnership Investment Properties

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We have a partnership client (not a LLP), who are landscape gardeners and who own several rental properties which have been included in the balance sheet of the partnership.  These properties have always been recorded at cost.

The 2 partners are husband are wife.

We recently attended a seminar where the lecturer stated that whilst there is not a legal requirement to prepare sole trader and partnership accounts, those that are prepared must follow UK GAAP rules, and therefore the properties should be revalued in accordance with SSAP 19, with the revaluation reserve being posted to the partners’ capital accounts.

Can anyone confirm that investment properties do need to be revalued in partnership accounts or whether recording them at cost is acceptable?

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By johngroganjga
04th Jul 2013 11:54

Lecturer is wrong.  Partners

Lecturer is wrong.  Partners can prepare their accounts however they wish.  He probably meant that profits for tax purposes must be computed in accordance with UK GAAP, which is the case.  If partnership accounts do not comply with UK GAAP they need to make any necessary adjustments in their tax computations.

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