Capital gains of a partnership

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Capital gains of a partnership

Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
imgtext

This guidance note details the capital gains tax rules for partners. For the tax on partnership profits, rather than gains, see the Trading profits of a partnership guidance note.

This note assumes a general knowledge of capital gains tax for individuals and companies. For detailed guidance on capital gains of individuals, see the Introduction to capital gains tax guidance note. For companies, see the Calculation of corporate capital gains guidance note.

See also Simon’s Taxes B7.406 onwards.

This note does not consider the tax position of foreign partners or of partnerships controlled abroad; see Simon’s Taxes B7.515 for this detail.

Stamp duty land tax should also be taken into account on transfers of land by partnerships, for more details see the Introduction to stamp taxes guidance note and other guidance notes in the same sub-topic. In addition there is specific commentary in ‘Analysis ― SDLT and partnerships’ by Susan Dennis and Adam Kay in Tax Journal, Issue 1641, 10, (17 November 2023).

Allocation of gains in partnerships

Once it is established that an asset is a

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+
  • 25 Nov 2025 12:00

Popular Articles

Trade or hobby

Trade or hobbyInteraction of hobby farming rules and commercialityFarming has its own set of ‘hobby farming rules’, which historically have stated that a profit must be made every six years. This is known as ‘the five-year rule’, in that there can be five years of losses but there must be a profit

14 Jul 2020 13:50 | Produced by Tolley Read more Read more

Repairs and renewals

Repairs and renewalsThe key consideration in determining whether expenditure on repairs and renewals is allowable as a deduction for tax purposes is whether it is capital or revenue in nature. In some cases, it can be relatively straightforward to identify revenue repairs. HMRC provides the

14 Jul 2020 13:23 | Produced by Tolley Read more Read more

Gifts with reservation ― overview

Gifts with reservation ― overviewIntroductionA gift with reservation (GWR) arises when an individual ostensibly makes a gift of his property to another person but retains for himself some or all of the benefit of owning the property. The legislation defines a gift with reservation with reference to

14 Jul 2020 11:48 | Produced by Tolley Read more Read more