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Robin and Stuart had been in partnership for many years preparing accounts to 31 December each year and sharing profits equally. On 1 January 2015, Tania joined the partnership and profits were then split 2:2:1.
The partnership made a profit of £96,000 in the year to 31 December 2014 and £112,000 in the year to 31 December 2015.
What the taxable trading profits of the partners for 2014/15?Robin and Stuart each………. Tania
A £47,200……………………….. £5,600
B £48,000……………………….. £5,600
C £11,200……………………….. £5,600
D £48,000……………………….. £22,400
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I got the answer for Tania, but getting the wrong 47,200 answer for Robin and Stuart each.
Please help! 🙂Robin and Stuart are continuing partners preparing accounts to 31 December. Therefore they will be assessed using CYB which for 2014/15 will be their share of the partnership profits for the accounting year ended 31.12.14 which is 48,000 each (96,000/2). Tania is a new partner for whom 2014/15 is her first tax year and will therefore be assessed on an ACTUAL basis (112,000/5 x 3/12)
So we will not take account of the share of Robin and Stuart for the remaining of the tax year period Jan to April 2015? Or we just reach out till the year end date because we will be using CYB?
They are assessed using CYB and they prepare accounts to 31 December hence y/e 31/12/14 is assessed in 14/15 and y/e 31/12/15 will be assessed in 15/16.
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