Basis period reform profit spreading period

When a sole trader takes on a partner and a partnership is formed it is treated as a continuation of trade for tax purposes. If the sole trader has transition profits brought forward that have been spread over 5 years, is the change from sole trader to partnership treated as a continuation of trade and the profit spreading continues or is it treated as a cessation of the sole trader business and the remaining profits chargeable at the date of the partner being added?

Hi,
When a partnership is formed it changes the business's legal structure. Effectively, the sole trade ceases and the partnership begins. For details on reporting this please see thr following guidance:
Tell HMRC about a change to your business 
Assets that where used by the original sole trader that continues to be owned by them does not trigger a capital gain. Only if the asset is to change physical ownership to the other partners may trigger a capital gain based on the percentage of the asset ownership is being transferred. You can see guidance here:
PM272100 - Capital gains- introduction
Thank you.

Thank you for your response, however it does not provide the information required. It would be appreciated if you could provide guidance specifically relating to basis period reform and the treatment of transition profits spread over 5 years if a sole trader forms a partnership. Can the profits continue to be spread over the 5 years?

Hi,
We can only provide general information / guidance in this forum.  
For an answer to a detailed question of this nature, you would need to contact our self assesment helpline on 0300 200 3310, contact our webchat facility at Contact HMRC or seek professional advice.
Thank you.