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