Partnership Valuation

JJH1969JJH1969 Feels At HomeStaffordshireRegistered, Array Posts: 110
Unfortunately my Dad passed away before Christmas and he was a partner in a business. In valuing his share at the date of death would you use his capital account at that date or another method using balance sheet assets or turnover?

Comments

  • JJH1969JJH1969 Feels At Home StaffordshireRegistered Posts: 110
    I am the accountant! I have read that for probate purposes it is just the capital account of the partner but wasn't sure if this was correct?
  • MindTheGAAPMindTheGAAP Registered Posts: 17
    Is there a partnership agreement in place with a clause regarding the death of a partner?
    MAAT AATQB
  • TreadStoneTreadStone Feels At Home AAT Licensed Accountant Posts: 279
    I'm sorry to hear of your loss.

    As above, there are a few ways of working out a valuation. This will depend on the type and size of the business.
  • TreadStoneTreadStone Feels At Home AAT Licensed Accountant Posts: 279
    Was there a partnership agreement ? This may well be a good starting point as it may state any mechanisms in place to value each partner's share.
  • JJH1969JJH1969 Feels At Home StaffordshireRegistered Posts: 110
    No no partnership agreement in place but I have found it in Tolleys tax guide and it is the capital account at date of death - thanks anyway
Sign In or Register to comment.