SRA Samples
An ordinary trading partnership has three partners:
the senior partner, the managing partner, and the junior partner.
The three partners share income profits equally and capital profits in accordance with their capital contributions as follows:
Senior partner: 50%
Managing partner: 30%
Junior partner: 20%
Five years ago, the firm purchased office premises. The premises have just been sold for a profit, realising a chargeable gain.
Who will be liable to pay tax on the gain realised on the sale?
An ordinary trading partnership has three partners:
the senior partner, the managing partner, and the junior partner.
The three partners share income profits equally and capital profits in accordance with their capital contributions as follows:
Senior partner: 50%
Managing partner: 30%
Junior partner: 20%
Five years ago, the firm purchased office premises. The premises have just been sold for a profit, realising a chargeable gain.
Who will be liable to pay tax on the gain realised on the sale?
The senior partner will be liable to pay Capital Gains Tax on 50% of the gain, the managing partner on 30% of the gain and the junior partner on 20% of the gain.
D - The senior partner will be liable to pay Capital Gains Tax on 50% of the gain, the managing partner on 30% of the gain and the junior partner on 20% of the gain.
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