The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note provides an overview of the VAT implications affecting businesses that trade as a partnership.
The Partnership Act 1890, s 1(1) (subscription sensitive) provides the following definition of a partnership:
1)“Partnership is the relation which subsists between persons carrying on a business in common with a view of profit.2)But the relation between members of any company or association which is-a)registered under the Companies Act 2006, orb)Formed or incorporated by or in pursuance of any other Act of Parliament or letters patent, or Royal Charteris not a partnership within the meaning of this Act.”
is not a partnership within the meaning of this Act.”
De Voil Indirect Tax Service V2.110 (subscription sensitive)
A partnership is an unincorporated association in which the agreement between the parties is such that the relationship between themselves and third parties is governed by the Partnership Act.
The existence of a partnership is a matter of fact and usually has the following elements:
In Scotland a partnership is a legal person distinct from the partners who compose it. See VATDSAG04350 for more information on Scottish partnerships.
From a VAT perspective the partnership itself will be treated as the taxable
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