Tax influences on choice of joint venture vehicle
Produced in partnership with Arun Birla and Hannah Gray of Paul Hastings (Europe) LLP and Sara Stewart of Vinson & Elkins RLLP
Tax influences on choice of joint venture vehicle

The following Tax guidance note Produced in partnership with Arun Birla and Hannah Gray of Paul Hastings (Europe) LLP and Sara Stewart of Vinson & Elkins RLLP provides comprehensive and up to date legal information covering:

  • Tax influences on choice of joint venture vehicle
  • Types of structure available for a joint venture
  • Establishing the joint venture
  • Operating the joint venture
  • Terminating the joint venture

This Practice Note considers how the principal UK tax aspects of the establishment, operation and termination of a joint venture may impact on the choice between operating a joint venture through a contractual arrangement, a joint venture company (JVCo) or a partnership. It is assumed for the purposes of this Practice Note that the joint venture parties are UK tax resident corporate entities and that any separate joint venture vehicle established is also UK tax resident. For information on joint ventures with a non-UK tax element, see Practice Note: Tax implications of international joint ventures.

Types of structure available for a joint venture

A joint venture is a commercial arrangement entered into by two or more independent parties. There are no specific laws, including tax laws, applicable to joint ventures and no technical legal meaning of the term.

A joint venture will usually take one of the following forms:

  1. contractual arrangement,

  2. partnership (general, limited or limited liability partnership), or

  3. corporate joint venture (JVCo)

The full details of establishing, operating and terminating each type of joint venture are explained in the following Practice Notes:

  1. Tax implications of contractual joint ventures

  2. Tax implications of establishing a joint venture partnership

  3. Tax implications of operating and terminating a joint venture partnership

  4. Tax implications of establishing a joint venture company, and

  5. Tax implications of operating and terminating