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Lee Sharpe points out that there is a potential ‘penalty’ for putting assets into a partnership structure.
Generally, changes in partnership ratios do not trigger a capital gains tax (CGT) charge. Strictly speaking, however, changes in capital-sharing ratios are disposal events for CGT purposes, by reference to the underlying chargeable assets.
While changes in partnership capital sharing ratios for ongoing members tend to be uneventful, HMRC has decided that introducing chargeable assets into a partnership should be dealt with differently, and it is much more likely that CGT will be triggered.
Statement of practice D12
TCGA 1992, s 59 applies to treat partnership assets as being disposed of by
