§ Mr. Peter Reesasked the Chancellor of the Exchequer whether it is the practice of the Inland Revenue to treat the admission of new partners into professional partnerships without the payment of any lump sum consideration as involving a disposal for the purposes of capital gains tax by the original partners of part of their shares of the partnership goodwill.
§ Mr. Patrick JenkinYes, but if no consideration is given by the new partners the disposal will not normally give rise to a chargeable gain. Special rules apply, however, where an existing partner and an incoming partner are connected with each other (otherwise than as partners).