This section considers SP D12, para. 2: Disposals of assets by a partnership.

Where a partnership disposes of an asset it owns to an outside party, each partner is treated as disposing of his fractional share of that asset for capital gains tax purposes. The capital gain or loss arising on each partner is calculated as follows:

(1)Disposal proceeds are allocated between the partners in the ration of their share in asset surpluses at the date of disposal. Where this is not specified, the allocation follows the actual destination of the surplus as shown in the partnership accounts, having regard also to any agreement outside the accounts.

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