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Sam
Sam, Accountant
Category: Tax
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Need some advise in regards to allocation of partnership

Resolved Question:

hi
need some advise in regards ***** ***** of partnership profits.
y/e 30/6/2015
profit of £14,000
3 partners equal equity.
1 partner leaves on 30/9/2014.
how do I allocate the profit i.e do I allocate the first 3 months to all the partners equally. then the following 9 months just to the remaining 2 partners.
or do I allocate it over 27 months (12 each partner and 3 for the one that left) and allocate the leaver 3 months.
regards
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.

Hi

Thanks for your question- I am Sam and I am one of the UK tax experts here on Just Answer.

Profit £14K split between three partners with one leaving part year

Accounts year runs to 30/06/2015

So Partner 1 whole year £6416.66

Partner 2 whole year £6416.66

Partner 3 that ceases 30/09/2014 £1166.68 (profit/3/12 x 3)

Thanks

Sam

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