This commentary summarises the impact of a partner retiring or leaving a partnership. For details of the impact of a partner joining a partnership see B7.507 and changes in profit sharing ratios are detailed in B7.408. Changes in partnerships as a result of a merger, demerger or conversion are detailed in B7.525 onwards.
For tax purposes, a partnership is deemed to continue, as long as at least one partner is the same both before and after the retirement1.
The partnership is treated as having ceased and recommenced if there is a complete change in the ownership of the partnership's business2.
Following the basis period reforms, which come into effect in 2024/25, partners are assessed to their
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:44