My husband and I were partners in a business that failed. When we divorced there was an outstanding income tax bill, and we were told we’d each have to pay an equal amount. I’ve been left some money in a will; does this mean I will have to meet the debt in full, or just pay my half?
The Inland Revenue will divide the debt according to the partnership tax return you submitted: partners can opt to split profits and losses in unequal percentages. If your accountants told you that you would each have to pay an equal amount it suggests you decided to split your losses 50/50, in which case you won’t now be called on to pay the debt in full. However unless you have reached a financial settlement with your ex-husband it’s possible he will have a claim on your legacy.