EM7504 - Partnerships: disposal of partnership assets

When a partnership disposes of a chargeable asset, they are required to include the amount of the disposal proceeds in the partnership tax return. Each individual partner however is separately required to complete their own capital gains computation in their personal return.

If you are reviewing the amount of the disposal proceeds on the partnership return, you should also consider what necessary action you may need to take in respect of the individual partners return.

You may be able to amend the disposal proceeds on the partnership return by means of an enquiry (or discovery amendment) on the partnership return, and you could make a consequential amendment to the partners return to correct the figure of the disposal proceeds reported on their personal return. This will not however enable you to correct the capital gains computation on the individual partners return.

You should always consider the position for the individual partners returns and decide whether an enquiry or discovery assessment is needed in respect of the partner’s personal return.

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