Capital allowances for partnerships

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

Capital allowances for partnerships

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

This guidance summarises the practical treatment of capital allowances where a qualifying activity is carried on by a UK partnership, including general partnerships and limited liability partnerships (LLPs). It focuses on plant and machinery allowances and the main procedural points a tax adviser will need when preparing partnership computations and advising on partner changes.

The general rules on which assets qualify for capital allowances (‘eligible assets’) are explained in the What are capital allowances? and What is plant and machinery? guidance notes.

Partnership property and ownership tests

A partnership can claim capital allowances on eligible assets which are either:

  1. owned by the partnership, or

  2. owned by an individual partner and used in a trade carried on by the partnership

Both of these are discussed below.

Owned by the partnership

It is not always clear whether an eligible asset is ‘owned’ by the partnership. Most partnerships are not legal entities (see the Partnerships ― overview guidance note), so some assets may be held on trust for the partnership by individual partners. Factors to consider include

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+

Popular Articles

Incentives, awards and prizes

Incentives, awards and prizesIntroduction ― incentives, awards and prizesEmployers may use a variety of methods to reward and encourage employees in their work. These are commonly known as incentives, awards or prizes. For the purposes of this note, the term ‘award’ will be used to cover all

14 Jul 2020 11:57 | Produced by Tolley Read more Read more

Tax on UK resident beneficiaries of non-resident trusts ― overview

Tax on UK resident beneficiaries of non-resident trusts ― overviewIntroductionUK resident beneficiaries of non-resident trusts are subject to UK tax on payments or benefits received from the trust. They are liable for income tax on income distributions from the trust and they may also be liable to

14 Jul 2020 13:47 | Produced by Tolley Read more Read more

Exemption ― overview ― items exempt from VAT in the UK

Exemption ― overview ― items exempt from VAT in the UKVAT exemption: list of supplies exempt from UK VATThe goods or services that are exempt from VAT are listed under various group headings within VATA 1994, Sch 9, Pt II.It is important to remember that not all supplies that come within a heading

14 Jul 2020 12:45 | Produced by Tolley Read more Read more