Partnership Law Flashcards
1
Q
When a partner leaves a partnership will they be liable for existing and future debts of the partnership?
A
A partner will remain liable for existing partnership debts (unless she enters into a novation agreement with the partnership and its creditors) but will not be liable for future debts as long as she complies with the notice requirements in s 36 PA 1890.
2
Q
How are new partners taxed for income purposes when they join a partnership halfway through a tax year?
A
The rule is that for the first year, partners are assessed on the trading profit from joining the partnership to the end of the tax year.
