An individual owns land. He is also a partner in a farming partnership with his wife and adult children. They share profits as agreed amongst themselves from time to time, but by and large the allocation has been equal.
The individual has granted a lease to a windfarm developer over an area of land used by the partnership. Until this point the partnesrhip has enjoyed the use of the land for its farm business. I would suggest that as things stand the land is not a partnership asset, although we can make it so if it was felt to be important.
The rental income generated by the lease is recognised in the partnesrhip accounts - Q - do we feel ok about allocating the rental income amongst the family/partners for what is essentially an investment return to the landowner? The result of this allocation is a spread of the income amongst individuals and benefiting from more tax free allowances and basic rate bands.