UK Partnership to Limited

[Katie M]

Hi
A client I freelance for, (mgt accounts and cash strategy mainly) wants to set up a limited company and cease trading as a partnership from April this year. I've never been involved in this before. Obviously the relevant registrations with Companies house are easy but they seem to think its just a case of setting up a new company and starting to trade. Do we have to value the partnership and transfer the net assets or can they be treated completely separate and no continuity is required? They think its super easy but other accountants have said its a nightmare. I am therefore confused. Does the limited company effectively have to purchase the assets and liabilities from the partnership? The company I refer to is a construction company and has continuing contracts in place with house builders etc. Advice greatly appreciated!

 

[Becky]

Welcome to the forum Katie

This isn't a situation I've been involved in, but on the tax side of things there is some useful information here: http://www.taxation.co.uk/taxation/Articles/2014/06/10/326271/good-company

 

[Katie M]

Thanks for the link but it wont let me read the full article unless I subscribe and I'm not able to do that as it costs money.

 

[Becky]

Ah, sorry about that. Weirdly the full article shows if you navigate to it through a Google search - here's the cached page:

http://webcache.googleusercontent.com/search?q=cache:Z_bx1WhA3eUJ:www.taxation.co.uk/taxation/Articles/2014/06/10/326271/good-company &cd=1&hl=en&ct=clnk&gl=uk