Im doing a set of accounts for a partnership to cessation.

From 1/8/08 to 3/4/10

Im a bit confused on how to deal with the fixed assets within the business.

My client has just stopped trading and thus still has all the assets.

Also, how would I need to apportion the profits to deal with the two different tax years, as well as the overlap relief.

A tax return for 08/09 has already been submitted.

Regards.

This is a short question requiring a long answer!
There is a lot of further information required in order to give a proper answer:-
1. Is it a long established business, and has the accounting date changed recently?
2. Were the last accounts for a full year to 31 July 2008?
3. Have there been any recent changes in partnership members/profit sharing ratios?
4. What actually became/will become of the fixed assets?
5. Have you got a market value for them?  Is goodwill one of them?
6. What about stocks?
7. Do you know the realisable value of debtors and creditors?
8. Do you have all the other information required to prepare final accounts?
9. Will the accounts show a profit or a loss?
If the last accounts were to 31 July 2008, then they will have formed the basis of the 2008/09 assessment, and will have been reported on the 2008/09 Tax Return.
Therefore there is only one tax year to worry about - 2009/10 (not two as your question suggests).
There may be losses to carry back but that is a different issue.
The 2009/10 assessment is based on the accounting period from 1 August 2008 to 3 April 2010, and divided between the partners in their profit sharing ratios.
The partners may have different basis periods depending on how recently they joined the partnership.
Overlap profits are personal to the partners and will be relieved individually in the partnership pages of their personal Tax Returns.
There are probably more issues that need to be addressed but hopefully you can see that there is far more ‘to it’ than your question suggests.
My advice would be to consult the partnership accountants, so that you know you are working in the right direction.

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