For updates affecting this Division please see Part I0 Updates
Partnerships and IHT—the basics
I6.201 Partnerships and IHT—overview
For further commentary on partnerships and other taxes see the following Divisions:
| What is a partnership? | Division B7.1 |
| Computation of partnership income and gains | Division B7.4 |
| Taxation of partnership income and gains | Division B7.5 |
English partnerships
Under English law, the term 'partnership' merely describes the relationship which subsists between two or more persons who carry on business together with a view to profit1. Such a partnership is not a separate legal entity, distinct from the individual partners. The rights and liabilities of a partnership are simply the aggregate of the rights and liabilities of the partners.
A partner is directly interested in each and every asset of his partnership, and participates directly in its profits. Contrast this with a shareholder in a company — he owns an asset (his shareholding) which is quite separate from the assets of the company, and is entitled to participate in the company's profits
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:39