This guidance note explains the tax treatment of other income for a partnership, ie income that is not trading income, and also looks at other types of income that the individual partners may receive. Trading income is discussed in the Trading profits of a partnership guidance note.

How other income in a partnership is allocated and taxed on the partners is discussed in the Allocation of partnership profit or loss and Taxation of other income of a partnership guidance notes.

The types of other income most commonly received by UK partnerships are UK interest, property income and taxed investment income. All these types of income are excluded from the adjusted trading profits of the partnership and taxed in accordance with the relevant taxing provision for the type of income and whether the receiving partner is an individual or a company.

Other income received may be untaxed eg interest and property income or it could be taxed income, the difference is relevant when allocating the income to the appropriate tax years for individual partners as set out in the