BTx - question

topcat · June 2014

Hi

What is going on here?

I can not seem to get any of the answers below

If anyone could show me the first few please i can have a go at the rest just can not seem to get it right

CeeJaySix · June 2014

1. assessable income for 10/11 will be the year ending Oct 10. Vi gets half of this, ie. 4,500. However as he leaves the partnership before the tax year end, closing year rules apply, and he will also be taxed on all further income untaxed to date. This is the following year's profits 9,480 x 2/12 (November and December whilst he was still a member) /2 = 790. 790 + 4,500 = 5,290.

2. is just half the assessable income for the year ending Oct 10.

3. you need to apply opening year rules for Russell - ie. his share from when he joins the partnership until 5/4/11.

4. still opening year rules - 1st Jan 11 - 31st Dec 11.

5. still opening year rules - first year on normal accounting dates.

6. there's two periods of overlap here - 1/1/11 to 5/4/11 is charged in both parts 3 and 4, and 1/11/11 to 31/12/11 is charged in both parts 4 and 5.

Hopefully from that you can put the figures in and work things out. It's easier to split the profits first between each partner for each accounting period, then think about basis periods for each partner's tax return.

topcat · June 2014

CeeJaySix wrote: »

1. assessable income for 10/11 will be the year ending Oct 10. Vi gets half of this, ie. 4,500. However as he leaves the partnership before the tax year end, closing year rules apply, and he will also be taxed on all further income untaxed to date. This is the following year's profits 9,480 x 2/12 (November and December whilst he was still a member) /2 = 790. 790 + 4,500 = 5,290.

2. is just half the assessable income for the year ending Oct 10.

3. you need to apply opening year rules for Russell - ie. his share from when he joins the partnership until 5/4/11.

4. still opening year rules - 1st Jan 11 - 31st Dec 11.

5. still opening year rules - first year on normal accounting dates.

6. there's two periods of overlap here - 1/1/11 to 5/4/11 is charged in both parts 3 and 4, and 1/11/11 to 31/12/11 is charged in both parts 4 and 5.

Hopefully from that you can put the figures in and work things out. It's easier to split the profits first between each partner for each accounting period, then think about basis periods for each partner's tax return.

Thanks very much for taking the time to explain all of that , will have a look over it again in a little while

Lucy_M · June 2014

When I do these I turn a piece of lined paper on its side and write the initials of the months across the top with the tax years and draw lines underneath for the periods, it really helps to see it laid out like this. Good luck x

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