Partnership CGT
In this lesson, you'll learn how capital gains tax works in partnerships and why the partnership entity itself doesn't pay CGT. You'll discover that each partner is treated individually, calculating their share of gains based on the capital profit sharing ratio and paying tax at their own personal rate.
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In this lesson
- 0:00 Partnership capital gains tax overview
- 0:14 Why partnerships don't pay CGT directly
- 0:29 How individual partners report gains
- 1:00 Business asset disposal relief eligibility
- 1:26 Worked example: calculating partner gains
- 2:22 Paying CGT on individual partner shares
About this lesson
The video walks you through the key principle that reliefs like business asset disposal relief apply separately to each partner based on their individual circumstances, then demonstrates how to calculate each partner's chargeable gain with a worked example. This is essential knowledge for the Taxation (TX) paper and shows you how partnership disposals are handled on individual self-assessment tax returns.
Duration: 3m
Transcript
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