I have a partnership that I work with, who have decided to dissolve as one partner is very ill. The remaining partner will carry on the business after the other partner has taken their share of the value in cash.
What happens in this situation with the capital expense account, where there is a remaining pool amount from previous years.
As the business will still be in existence, just as a sole trader, rather than a partnership, can this just be carried over?
Hi Lyndsey
Is the outgoing partner taking any assets other than cash?
If not - then just carry on as usual.
Worth mentioning probably that when you do the partnership return, not on it that the partnership ceased on xx date. Might be worth writing to HMRC, but as we all know they take an absolute age to deal with letters, so if you get any more requests for a partnership return you will have to do them at nil to avoid fines. Accounts will be in sole trader name obviously and other thing to sort is the Bank. If there are any overdrafts and loans the Bank will be reluctant to take one partners name off it without either the facilities being fully repaid or at the very least renegotiated so thats one to maybe tackle first if they owe the Bank.
HTH
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
