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

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

Outright gifts

Outright giftsAn outright gift is the most straightforward type of gift. It simply involves the outright transfer of property from one person to another with no conditions attached.This type of gift is most suitable for clients who want to pass over modest amounts, or give to responsible and capable

14 Jul 2020 12:22 | Produced by Tolley in association with Emma Haley at Boodle Hatfield LLP Read more Read more

BPR ― trading and investment businesses

BPR ― trading and investment businessesIntroductionThe basic qualification rules for business property relief (BPR) are illustrated in the Flowchart ― trading or investment business for BPR purposes.For an overview of BPR, see the BPR overview guidance note.Relevant business propertyThe main

14 Jul 2020 15:36 | Produced by Tolley Read more Read more

Entity classification

Entity classificationImplications of entity classificationIf a subsidiary is established, it is important to determine how it will be treated for UK tax purposes as this will determine the basis on which it is taxed. A subsidiary may either be transparent (like a partnership, where the individual

14 Jul 2020 11:37 | Produced by Tolley Read more Read more