Partnership taxing of stock

[auds1952]

Hi all,
Any help you can offer would be great. I am completing first tax return 2010/2011 for a partnership I have with my son. Two areas I need your input about.
1. Partnership only running since 1/6/11. We bought loads of stock to sell on a website. Very little sold so therefore running at a loss. In tax return I input sales and purchases but they ask about stock in hand. Do I include stock at cost or sale price? and will this then appear as less of a loss?

2. As above stock not selling via website we have closed website down and want to now include the garments for sale via our sports club partnership.
Do we just close first partnership down and sell stock to other one? At what cost? cost or sale price?

thanks

[antonycc]

>> ...they ask about stock in hand. Do I include stock at cost or sale price?

Stock at cost.

>> Do we just close first partnership down and sell stock to other one? At what cost? cost or sale price?

I'm not sure about the process for closing a partnership down. You'll need to call HMRC anyway so ask them when you do. Also take a look at this: http://www.hmrc.gov.uk/dealingwith/c...l-business.htm

In terms of moving the stock, selling at cost seems the fairest thing to do. This would empty the inventory of the website business without brining in additional profit. If you transferred the stock at retail price the website business would look artificially profitable and the sports club would need to sell at above going rate to make a profit. On paper you'd have closed a profitable business and encumbered a new one.

Thanks,

Antony.

[auds1952]

thanks anthony, this agreed with my thoughts but wanted to check.

Regards
audrey