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Partnership to sole trader - CA's

Partnership to sole trader - CA's

P'ship of 2 people.  one partner dies on 30 September and the other person carries on as sole trader without a "disposal" of the assets of the old p'ship.  One set of accounts to 31 March are prepared.

The business spends £10,000 on P&M in the period to 30 September and £20,000 in the the period after.

What is the position with AIAs and WDAs


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By Ford
05th Dec 2012 11:43

Treated as continuing

Under the current year basis of assessment the business is treated as continuing, there is therefore no effect on the capital allowances on the move from partnership to sole trader.

The accounting periods and basis periods remain at the normal year end date for the continuing partner, only on a sole trading basis. Any overlap profits are simply transferred from his partnership pages to the sole trader pages of the tax return.

Normal rules for AIA also apply to each tax year.

See at or around for more info.


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By blok
05th Dec 2012 13:42



Ford, I had indeed seen that manual page and was concerned by the term "partnership carries on the same business " because the partnership will cease on the death of the second partner. 

I believe that this particular manual doesn't address the point.



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By Ford
to lionofludesch
06th Dec 2012 18:40

Hi Blok

The partnership has clearly ended but the same business/trade is still being carried on presumably?

Assuming it is then as above the remaining partner is simply continuing and all is as stated above.

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05th Dec 2012 16:36

Accounts will need to ne prepared for

30 September in order to be able to provide the value of the capital account for probate.

Could also be worth reviewing those results for a change of accounting date.

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