P'ship - corporate partner computation ?

P'ship - corporate partner computation ?

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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?

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By George Attazder
19th Jun 2012 10:54

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?

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By blok
19th Jun 2012 11:08

.

That's partly the point I am making.

I think I need to split the private use adjustment bewteen the "real partners" that are subject to income tax.

Would you agree?

 

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By George Attazder
19th Jun 2012 11:18

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.

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