Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
, see all updates

Fractional interests in partnership assets acquired in stages: SP D12

Paragraph 10 SP D12

Where partners acquire their fractional interests in partnership assets in stages over a period of time the acquisition costs are pooled.


X was admitted to a partnership in 2004 at which time he acquired a 20% interest in goodwill. His interest in goodwill was increased in subsequent years:

2004 20% cost £100,000
2006 10% cost £50,000
2008 5% cost £35,000

The base cost of Partner X’s 35% interest in goodwill for CG purposes is £185,000.

Any subsequent reduction in Partner X’s interest in goodwill will be treated as a part-disposal out of the pooled expenditure.