Partnership Tax Question

Hi all,

I am about to prepare my income tax return, Form 11, for 2018. I was a partner in a partnership for during 2018 and left in July 2019. The partnership accounts are made up to 31st May each year. I have final accounts for the partnership for the year ended 31st May 2018 and draft accounts for the year ended 31st May 2019. My question is this: When filing my income tax return for 2018, do I just include my share of the tax adjusted profits for the accounts year ended 31st May 2018 or do I need to include my share of the tax adjusted profits for the calendar year ended 31st December 2018? (ie taking 5/12 of my share of profits for accounts year ended 31st May 2018 and 7/12 of my profits share for year ended 31st May 2019).

Thanks in advance,

John.

My view is that the your 31/05/2018 should be your accounts for 2018. For 2019, the year of cessation, your basis of assessment will be actual 5/12 of the 2019 accounts and 2/12 of the 2020 year. From memory you will need to revise your 2018 to actual if it give a higher figure than already returned. Actual will be 5/12 of 31/5/2019 and 7/12 of 31/5/20. I think this is done on your 2020 tax return.

When did the partnership start?

What did you do for 2017?

Thank you both for your replies. The partnership started many years ago. I was an employee of for most of 2017 but joined the partnership in October 2017.

John.