BIM73175 - Farmers' averaging: partnerships and farmers' averaging: SA

Where farming is carried on in partnership, the introduction of SA has affected the way averaging claims are made. Put simply:

• Under the old rules, which apply to partnerships which commenced trading before 6 April 1994 where the claim is for 1995-96 and 1996-97 or an earlier pair of years, averaging is claimed jointly by all the partners and affects the whole of the partnership profits, see BIM73180.
• Under the new rules, which apply to partnerships which commenced trading on or after 6 April 1994 regardless of the years covered by the claim, and to other partnerships where the claim is for 1996-97 and 1997-98 or a later pair of years, averaging is claimed by the individual partner and only affects that partner's share of the partnership profits, see BIM73185.
• For partnerships which commenced before 6 April 1994, the rules which apply for 1996-97 depend on whether it is averaged with 1995-96 or with 1997-98, see BIM73190.