Partnerships Flashcards
Definition of a Partnership
How is a Partnership Defined in the Partnership Act 1980?
A Relationship Between Persons Carrying on Business With a Common View of Profit.
Partnership Agreement
Partnership Agreements Should Contain Details of:
- How Profits are Shared;
- Rules on Admittance and Retirement of a Partner;
- Conduct of Partners;
- Ownership of Assets.
Partnership Self-Assessment
What is the Nominated Partner Responsible for?
- Registering the Partnership with HMRC;
- Completing the Partnership’s Tax Return.
Partnership Self-Assessment
What is the Filing Deadline for a Partnership Tax Return?
The Normal Self-Assessment Filing Deadline.
Partnership Self-Assessment
What is Charged When the Filing Deadline is Missed?
A £100 Late Filing Penalty for Eac Partner
Paragraph 25 of Schedule 55 in Financial Act 2009.
Partnership Self-Assessment
How Long Must Partnership Records be Kept?
5 Years and 10 Months Following the Tax Year.
Relief for Qualifying Loan Interest
When is a Loan Qualifying Under Section 398 of ITA 2007?
Where the Funds are Used as a Capital Contribution Into a Partnership.
Notional Losses
When Does a Notional Loss Arise?
Where a Partnership as a Whole Makes a Profit, But an Individual Partner is Showing a Loss.
Notional Losses
Notional Losses Could Arise Where:
- Partners Have Agreed High Salaries;
- Profits are Low in a Particular Year.
Notional Losses
How are Notional Losses Treated for Tax Purposes?
They are Reallocated to Other Profit-Making Partners.
Further Issues
How are Partner Salaries and Interest on Capital Calculated?
On an Annual Basis.
