| Commentary

22.1 Individual taxation of partners

| Commentary

22 General and limited liability partnerships

22.1 Individual taxation of partners

Where a general partnership disposes of a business asset forming part of the partnership property, each member of the partnership is treated as disposing of his fractional share of that asset1 and, if the disposal is a chargeable disposal, this gives rise to a gain or a loss in the usual way2.

This rule that the assets of a partnership are treated for capital gains tax purposes as held by its members as partners, and any dealings by the partnership are treated as dealings by the members, reflects the true legal

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