New CLA Farming Partnership Handbook released
CLA Senior Tax Adviser Jimmy Tse introduces a new handbook which assesses different aspects of legal principles, tax law and accounting practice, affecting partnership businesses.Did you know that a partnership has been traditionally the most common set up for a farming family? It allows the family members to pool their resources and skills without having to go through the formalities of setting up and running a limited company.
The CLA tax department has a wealth of experience in dealing with partnership matters. We regularly advise members on the use of a partnership as part of their succession planning, as this can give a tax advantageous outcome. We also assist members with managing the partners’ internal affairs, which can be especially difficult for an established partnership set up a few generations ago.
We draw on these experiences in the handbook and look at various frequently asked questions, such as whether to include the land in the partnership, since getting the right balance can be tax efficient. We also outline the partners’ legal rights, obligations and entitlements, amongst other things.
Our handbook provides a synopsis not only of partnership law but it also deals with accounting and tax issues to give the reader a flavour of the pitfalls and issues to consider when setting up or managing a partnership. Don’t forget, the CLA tax department is always here if members would like further help.
