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Ask James Mather Your Own Question
James Mather
James Mather,
Category: Law
Satisfied Customers: 22629
Experience:  Senior Partner at Berkson Wallace
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Is it possible to leave my share in a business partnership

Customer Question

Is it possible to leave my share in a business partnership to my son or daughter in my will and will it be taxed
Submitted: 4 years ago.
Category: Law
Expert:  James Mather replied 4 years ago.

Hello, I am Law Denning and I am a practising solicitor in a High Street practice. I have been an expert on this website in UK law since 2008. During that time, as you appreciate, I have answered thousands of questions from satisfied users on a variety of subjects. Because we are all in practice with clients and court and other users, I might not always respond in minutes, particularly evenings and weekends. Please bear with me in that case

It is my pleasure to try and assist you with this today. Please bear with me
while I gather some further information from you in order for me to be able to
advise you fully.

Unless I have all the facts that I need, my answer would not be accurate.

-Could you explain your situation a little more?
Customer: replied 4 years ago.

I am in a business partnership with other members of my family and may wish to leave my share to my son when I die.

Expert:  James Mather replied 4 years ago.
What does your partnership agreement say on the point?
Do you have one?
Will the other partners agree? I am offline shortly until tomorrow but will pick this up then.
Customer: replied 4 years ago.

Do you have one? Yes I do have a partnership agreement but this point is not mentioned in it

Expert:  James Mather replied 4 years ago.
Does it cover retirement or death?
Customer: replied 4 years ago.

yes, it does mention something about death. I says that in the event of a partner dying or retiring, his share may be divided amoungst the remaining members. In my own case my sons and daughters are also partners, but they do not all have equal percentages. In fact they vary between 24% and 0.2%. Does this answer your question?

Expert:  James Mather replied 4 years ago.
That only partly assists. It may or not be allowed. What is the exact wording?

I can tell you that it is treated as an aset for IHT and CGT purposes less any business relief.