Types of partnership and types of partner

By Tolley

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

  • Types of partnership and types of partner
  • Introduction
  • General partnership
  • Limited partnerships
  • Limited liability partnerships (LLPs)
  • Scottish partnerships
  • Salaried partners
  • Tax treatment of partnerships
  • Overseas partnerships


Partnerships established in the UK are one of four types:

  • general partnerships
  • limited partnerships
  • limited liability partnerships
  • Scottish partnerships


Those who are called ‘partners’ may thus belong to one of these partnerships. In addition, ‘salaried partners’ may not be partners at all, but employees. For tax purposes, all UK partnerships are transparent, but this is not always the case overseas.

General partnership

The most common form of partnership in the UK is a general partnership. General partnerships are established under the Partnership Act, which defines a partnership as the relationship which subsists between persons carrying on a business in common with a view of profit.

Partnership Act 1890, s 1 (subscription sensitive)

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