Partnership - Acquiring share of other business

[hans]

Good morning all,

I`m after a little bit of advice. I am planning starting a partnership with my wife while both of us are still full time employed. The reason why we would like to do this is because we are planning on buying a local business in 5 steps (years).
So every year our partnership will acquire/buy a certain share percentage of that limited business.
Can you please tell me when acquiring shares as a partnership how is it going to show in the balance sheet of the partnership!? we obviously paying tax on our current jobs...

Is the acquisition going to be an expense or capital allowance for partnership? do you think we can deduct our PAYE taxes from the amount that we pay for buying that business?

Look forward hearing back from you.

Regards
Hans

[Darren at Fox-Bartfield]

Acquisition

From what you're saying, the business you're acquiring is a limited company? So you're purchasing shares in the company over a period of time (i.e. 5 years).

Purchasing shares is an investment and therefore capital. There are other ways to do this that would give you a deduction against your personal tax depending on how the deal is structured. Has the deal already been signed before taking advice?

[hans]

Thx for your reply Darren,

At the moment i've not signed anything. I'm just trying to figure out what will be best option for me.

All I know is that business will be for sale later on and the current owners will be ok to sell it over a period of 5 years.

if you can give any other idea i will be grateful so i can get back to the owners to see if they will be happy with it.

Kind regards,
Hans