Basis periods and partnerships

Basis periods and partnerships

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We have a new LLP with a first year of 20th April 2018 to 30th April 2019, do I enter the full period on the partnership return? and put an adjustment on the individual tax returns for the partners along with the overlap profits to line this up with 5/4/19, do I enter the period 20/4/18 to 5/4/19 on the partnership return and put the overlap on the individual returns. I notice that box 9 on the individual tax return allows for a basis period adjustment, how do I then deal with the finance restriction on let residential property. Thanks

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paddle steamer
15th Jan 2020 14:08

You cannot really enter the full period on the 2018/2019 partnership return as 30th April 2019 is after 5th April 2019.

The overlap will not arise until 2019/2020 returns are done.

Ages since I have done a new partnership without a 31st March year end but my inclination for the pship return for 18/19 would be to calculate the apportioned part re 20/4/18( commencement) to 5/4/19, insert on pship return as single apportioned figure (also using white box to explain) and then return actual accounts on pship return 19/20 with overlaps on individual partner returns for that year.

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By CW2012
15th Jan 2020 14:14

Thanks DJKL

That makes sense to me.

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By clark.hall
15th Jan 2020 15:10

Some quotes from the Partnership Tax Return Guide might help:

Tick box 3.11 if the partnership’s accounts do not cover the period from the last accounting date or if no accounts end in 2018 to 2019. Explain why in box 3.116 ‘Additional information’, on page 3 of the Partnership Tax Return."

PTGR page 8 “In some situations you may need to combine or divide the figures to fit the standard format It’s quite possible that there may be more than one acceptable way of doing so. Whichever method is adopted, be consistent from one year to the next. If you want to explain any figures in more detail make a note in box 3.116 ‘Additional information’, on page 3 of the Partnership Tax Return”. Make sure that you transfer all the entries from your accounts, and that you include them once only. – I.E. DO WHAT YOU WANT BUT DON'T CONFUSE US AND INCLUDE FIGURES TWICE.

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