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Capital gains tax implications for assets on incorporation of a partnership.
My client is a partnership of two brothers A and B. Within the partnership balance sheet there are two properties whereby A is the registered owner of one and B the other. They are now incorporating the company and wish to retain ownership of their ‘own’ assets.
However I am concerned about any potential capital gains tax implications of doing this. Namely is the partnership deemed to be disposing of property?
I look forward to hearing what readers think about this.
Query 19 050– Brothers.
Reply by Sister
Brothers’ query concerns the capital gains tax treatment of partnership assets on incorporation. It is a basic premise of taxation that a partnership is not of itself liable to tax being transparent for tax purposes so we must look through it to see the impact of taxable events on the individual partners.
Allocation of profits...
