Taxed income of a partnership

By Tolley
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The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Taxed income of a partnership
  • Introduction
  • Common sources of taxed income
  • Tax vouchers
  • How taxed income is treated
  • Bank and building society interest (2016/17 onwards)
  • Partner’s Tax Return

Introduction

This note explains the rules which apply when a partner receives taxed income from his partnership.

For untaxed income, see the Untaxed income of a partnership guidance note. For the taxation of trading profits see the Partnership profit allocation guidance note. For foreign income, see the Partnership foreign income and tax paid guidance note.

Common sources of taxed income

Partnerships frequently receive taxed income of the following types:

  • dividends paid by UK companies
  • dividends from real estate investment trusts (REITs)
  • dividends on ‘authorised’ unit trusts or open ended investment companies (OEICs)

Sometimes dividends are automatically reinvested, for instance when the holding is

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