24 October - Advising partnership clients: Tax issues you need to be aware of
Event summary
An overview of the tax issues that you need to think about when advising partnership clients. You’ll get a refresher on the rules on the allocation of profits and losses between partners, as well as capital gains. You’ll also hear more about the rules you need to follow when there are changes in the membership of a partnership.
In this webinar we looked at the tax implications on partnerships whose members are not all individuals, including the impact of Section 464A CTA 2010 on partnerships with a company as a member. We will also explore loans to partnerships and how Section 455 CTA 2010 will apply following the 2013 changes, including how those changes impacted Scottish partnerships.
Key themes and topics
- Refresher of rules on allocating profits and losses between partners.
- How to deal with changes in the membership of a partnership.
- Tax implications for partnerships whose members are not all individuals.
- Section 464A CTA 2010 and how it affects partnerships with companies as members.
- Loans to partnerships and how Section 455 CTA 2010 applies following 2013 changes.
- Treatment of Scottish partnerships and how this has changed.
(Duration: 59 minutes. Originally recorded on 25 October 2024)
In respect of the question raised during the webinar, HMRC has issued some guidance on the restrictions on loss relief for limited partnerships (HMRC manual PM194000) and Limited Liability Partnerships (HMRC manual PM131520). Limited partners in a limited partnership and non-active partners in a general partnership or LLP are affected by both the restriction for capital contribution and the £25,000 cap (see HMRC manual PM193000. To clarify, an (active) member of an LLP is subject to the restriction for capital contribution but not the £25,000 cap.
These restrictions do not affect the broader income tax loss relief cap of the greater of 25% of adjusted income or £50,000 (see see HMRC manual BIM85703) or industry specific restrictions such as hobby farming rules (see HMRC manual BIM85600), both of which apply to partnership income. Should you have any queries about this, please get in touch via the ICAS technical helpdesk or email tax@icas.com
Who are the speakers?
- Hosted by David Menzies CA, Director of Practice
- Chris Campbell BA (Hons) CA CTA ATT, Head of Tax (Tax Practice and Owner Managed Business Taxes)
Who’s this for?
- ICAS members interested in tax
- ICAS students interested in tax
- Non-members interested in tax
Counts as CPD activity
Depending upon your individual role and training and development needs, watching this webinar can count towards your annual Continuing Professional Development (CPD) requirement.
