Section B - Case 1: Quantum Aquatics
Zara and Felix run 'Quantum Aquatics', a partnership specializing in hydro-electric turbine maintenance. They share profits in the ratio 3:2. The partnership has always prepared accounts to 31 December. On 30 September 2023, Felix retired, and Zara continued as a sole trader. The partnership's tax adjusted trading profit for the 9-month period to 30 September 2023 was £90,000.
What is the basis period for Felix's final tax year (2023/24)?
ACCA · Question 20 · Chargeable gains for individuals
Section B - Case 1: Quantum Aquatics
Zara and Felix run 'Quantum Aquatics', a partnership specializing in hydro-electric turbine maintenance. They share profits in the ratio 3:2. The partnership has always prepared accounts to 31 December. On 30 September 2023, Felix retired, and Zara continued as a sole trader. The partnership's tax adjusted trading profit for the 9-month period to 30 September 2023 was £90,000.
Felix wishes to claim Business Asset Disposal Relief (BADR) on the disposal of his partnership interest. Which of the following conditions MUST be met for his disposal to qualify for BADR?
Answer options:
He must have been a partner in the business for at least 1 year up to the date of disposal.
He must have been a partner in the business for at least 2 years up to the date of disposal.
He must hold at least 5% of the partnership capital.
He must be an employee of the partnership.
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