Further to my previous post, the eagle-eyed amongst you will have noticed that the provision relating to the allocation of firm’s profits or losses between partners has been omitted from the Finance (No. 2) Bill, which was published on 1 December 2017. The draft provision stated that taxable profits should be allocated in the same proportion as accounting profits, although many firms do not operate this policy in practice with private expenses often allocated to partners on a specific basis. The announcement will be welcome news to many firms who were concerned about how this could be managed internally and maintain an equitable split between partners.
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