Summary of Assessable Assets of Partnerships Only | CLIK

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Section 52D VEA

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This topic provides a summary of assessable assets for pensions that relate to partnerships only.

Summary table - assessable assets for pensions

The following table summarises the assessable assets, and their treatment, from a partnership's business for pensioners.

Asset	Treatment
Business assets	Assess the pensioner's share of the current value of business assets, less business liabilities. This is the sum of the pensioner's capital and current account plus their share of adjustments, either excess or deficit, from the balance sheet, as per the partnership agreement or a proportion of profit distributions. Add this to the pensioner's personal assets to determine if they are under the assets test threshold.
Loans to the business by a partner	Treat them as an injection of capital in the business. Allow any liabilities on the balance sheet as deductions against business assets. Add them back, however, to the value of the applicable partner's interest in the business.
Loans to the business by persons other than a partner	Assess them as 'loans' if the lender is a DVA pensioner. Take into account as liabilities when calculating the assessable value of the business.
Loans by the business to a partner	Include them as assets when calculating the overall value of the business, but deduct the pensioner's loan from the assessable value of the interest in the business.
Loans by the business to persons other than the owner	Assess them as the personal financial investments of the partners in the proportion to which they share these assets.
Non-partnership assessable assets providing security for business liabilities where the business has a net deficiency	Deduct the pensioner's share of the amount of the deficiency from the value of the assessable assets providing security.
Value if the pensioner's share of interest in the partnership is a deficiency, but their spouse's interest in the same partnership has an assessable value	The amount of the deficiency is the value of the interest in a partnership held by one member of a couple. Offset this against the assessable value of the interest held by their spouse in the same partnership.