End a partnership: how to?

Savvy_Sue

Asking for a friend. They used to co-own a house, which they rented out. Tax returns all compliant: partnership, both individuals, all up to date.

House sold some time ago, final returns which would include this income source dealt with.

Other partner has been unable to find the right form to end the partnership. Is that because there's no such form, and they just write to HMRC and explain the situation?

Jeremy535897

Co-owning a house is not normally regarded as a partnership. You would normally declare the rent in the property pages.

Remember the need to report and pay capital gains tax within 60 days of completion:
https://www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-sold-a-property-in-the-uk-on-or-after-6-april-2020

Savvy_Sue

Regardless of whether it was normal or necessary, they set up a partnership and treated the house as a business, but not a Ltd.

I'm sure the CGT would have been dealt with.

It's the question of how to tell HMRC that the partnership has ended, so they aren't chased for future partnership returns or liabilities.

tightauldgit

The HMRC site says that the fact the partnership is ending should be reported on the final partnership tax return. Did they do that?

If so then they're probably fine, if not then they probably need to phone/write to HMRC and tell them. Worst case they might have to file one more tax return showing no income  and that the partnership is ended. 

If no tax is due then it shouldn't be a big deal. 

Savvy_Sue

Brilliant, I'll pass that on.