In R King and others v HMRC [2016] UKFTT 409 (14 June 2016) the FTT found that the personal return of a partner does not have to be consistent with the partnership return if the partner disagrees with it.
The appellants had all been members of a limited liability partnership accountancy firm until the business of BTG had been acquired by accountants Smith & Williamson LLP so that each appellant had ceased to be a member of BTG and had become a member either of Smith & Williamson or of another firm of accountants. The accounts of BTG which had been audited by Deloitte as GAAP compliant had showed a loss but the partnership return had included a profit as a result of an ‘add back’ by designated members. However the appellants considered that there had been no legal basis for the add back...
