Commentary

B7.101 Statutory definition of a general partnership

Business tax
Business tax | Commentary

B7.101 Statutory definition of a general partnership

Business tax | Commentary

Part B7     Partnerships

Contents of Part B7

B7.1     What is a partnership?

[B7.2]     [Rewritten—Particular types of partner]

[B7.3]     [Rewritten—Particular types of partnership]

B7.4     Computation of partnership income and gains

B7.5     Taxation of partnership income and gains

Division B7.1     What is a partnership?

For updates affecting this Division please see Part B0 Updates

Definition of a partnership

B7.101 Statutory definition of a general partnership

Most general partnerships are established under the Partnership Act 1890. A partnership may also be established under the Limited Partnerships Act 1907 (see B7.106) or under the Limited Liability Partnerships Act 2000 (see B7.107).

The Partnership Act 1890 defines a partnership as the relationship which exists between persons carrying on business in common with a view of profit. A person includes a body of persons, corporate or incorporate1, so that a company or a trustee can be a partner.

Specifically excluded from the definition of a partnership is the relationship between members of any company or association incorporated under the Companies Acts or any other Act or letters patent or royal charter2. Therefore shareholders in a company cannot be said to be in partnership with each other.

An unincorporated society or association will only be a partnership if it is carrying on a business with a view to profit, so that a mutual society such as a members' club is unlikely to qualify as a

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial