We offer a range of high quality accounting, financial and business services in and around Milton Keynes.

Preparing your partnership

At B2B Business Advisors Limited we can advise businesses in the Milton Keynes area on business exit strategies. Here are some of the issues that partnerships need to consider...

No partnership lasts forever - although some, especially those that resemble 'Grandad's axe' (two new heads, three new handles) do last for a very long time.

However, there may come a day when the end of your partnership is in sight. This may be because:

  • the business is being incorporated
  • the business is no longer profitable
  • the majority of the partners all wish to retire
  • the business is being sold
  • the partners have 'irreconcilable differences of opinion' over the way the business is to go forward, or perhaps they simply no longer want to work together.

There are many reasons why a partnership might be coming to an end, and care needs to be taken if a tax 'penalty' is to be avoided. For example, on the sale of a partnership business to a plc, the best strategy might be to incorporate the business, then take shares or loan notes in exchange for your shares in the business. As well as reducing the cashflow impact of the sale on the new owners you may, with care, be able to shelter or defer substantial capital gains. This might not be a strategy suitable for all sales, but we can advise you regarding your own particular circumstances.

No-one starting a business will naturally plan for its end, but we can help you by discussing the partnership agreement. Just as it is important to agree who puts what into the new partnership and what profit share they will take, so it is important to set out in your partnership agreement exactly what each party will be entitled to when they leave, or when the partnership comes to an end.

Will a departing partner be entitled to only his or her share of the original capital, to a share in the tangible assets and goodwill, or to an annuity? This should all be set out in your partnership agreement - as should the procedure in the event of a dispute.

It is important that a structure is created for the management of your partnership, and for a successful exit from it, whatever the future may bring.

If you are in the Milton Keynes area and are looking for professional advice on business exit planning, including exiting from a partnership, contact B2B Business Advisors Limited.

Register

Why not register to receive our monthly newswire? This is packed full of essential business news and handy tax tips to help save you money.

Learn more

Tax Calendar

Our handy tax calendar provides an overview of the key tax dates for your diary.

Learn more

Calculators

B2B’s interactive tax calculators can be used to calculate VAT due, the taxable benefits on your company car and how much your savings are worth.

Learn more

The latest news

Keep up to date on the latest from the world of business and tax with our daily news stories.


Home | About us | Contact us | Logon | Register | Accessibility | Disclaimer | Help | Site map |

© 2018 B2B Business Advisors Limited. All rights reserved.

We use cookies on this website, you can find more information about cookies here.
Chartered Tax Adviser

Registered in England, Company Registration number – 7906656. Registered Office – 58b High Street, Stony Stratford, Milton Keynes, MK11 1AQ. Registered with the Chartered Institute of Taxation as a firm of Chartered Tax Advisers. Registered to carry out audit work and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales.