When a sole trader takes on a partner in the business is this regarded as a cessation of the sole trader business? If so then can one claim relief for overlap profits?
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No. Somebody in business in a partner is self employed. The overlap profits are carried over to the partnership source of income.
years ago pre SA this was all the rage
The concept of creating cessations by partners joining/leaving disappeared when we moved onto the Curent Year Basis when SA was introduced in 1996
Mark
Change of accounting date
Creating a partnership combined with changing the year end, could utilise the overlap relief available.