Partnership tax return

zephyr

Hi
Could some one please advise?
I have a cleint Ltd company that is intending to set up a partnership with another ltd company , who is based in Holland).

The intention is the partners will be the two ltd companies.the profit split will be 50%. The partnership will be registered in the Uk.

My query is on completion of the partnership tax return - partners statement. I will have the UTR of the UK based Ltd company but not the Holland based company.

How do I fill in the return?
Do I tick box 4 - drawn up on corporation tax rules, then ignore the rest, as the partners are not individuals but companies?

And then each partner LTD company would then declare their split of the partnership profit on their own accounts?

Advise would be appreciatiated

davealucas

I suggest that you take a look at IFRS11 - Joint Arrangements. This gives the expected standards for Joint Operations and Joint Ventures.

Joint Operators are expected are expected to recognise the revenue, expenses, assets and liabilities in accordance with the relevant IFRS standards.

Joint venturers are expected to follow IAS28 and account for their interest using the equity method.