It has been a while since I have looked at CGT's for partnerships but here goes:
Partnership had been trading for many years with two partners. Unfortunately in 2018 one of the partners passed away and his share of the prtnership was inherited by his 2 sons.
The partnership was a corner shop which made <£5k of profit each year but it did own the freehold from which the partnership traded.
The shop was purchased many years ago and some improvement costs have been incurred since, some of which qualified for CA's (air con etc.) and others didnt.
The business has now been sold, the pship had no value in terms of goodwill and so all of the proceeds has been allocated to the value of the property with £500 to stock.
I understand the base cost for CGT for the two sons will be the value of the property (50%) upon the passing of their father.
Are the gains as simple as the following:
The accounting profit on the sale of the property is deducted on the tax comp.
Original partner 1 gain will be Share of sales proceeds less share of original cost and improvement costs. Question, should this include the share of the costs which have already qualified for CA's? I assume so?
Partners 2 & 3 who inherited their share of the business - Their gain will be share of proceeds less value of the business (property) when inherited
Any help would be great.