I am a member of a limited liability partnership (LLP), which was set up for property development purposes. It consists of four members, me being the only individual. A garden centre was purchased and held for eight years, with rents being collected from the various businesses operating within it. This has now been sold with planning permission for development, and the LLP is being dissolved. The partnership tax return reports the sale proceeds as income, and I need advice as to how this should be recorded on my personal self-assessment tax return. I assumed it would be a capital gain. 

Arthur Weller replies:  

From what you have written, I would agree with you that this should be treated as a capital gain (although it is not possible to say definitively without knowing all the facts.) I would go back to whoever prepared the partnership return and ask them why this was reported as income. If you do not get a satisfactory reply, and they are unwilling to change, and you are sure of yourself, I would record it on your personal tax return as a capital gain.