Partnership with corporate partner computation shows a private use adjustment for use of vehicle privately.
When share of the profit is allocated to the company what shall we do with the private use adjustment which is not recognised in Corporation tax computations?
Replies (3)
Please login or register to join the discussion.
I know it sound like a silly question...
... but trust me I'm going somewhere! but it's one of two places.
How can a company (not a real person) have private use of a car?
Yes
It is, of course, possible to have a different profit share computed under income tax principles and corporation tax principles.
Allowing any private use adjustment to go to the corporate partner though does then raise the question of whether the director of the corporate partner has had a motor vehicle available to them for private use by reason of that directorship.