Commentary

C1.207 Partnerships, including limited liability partnerships

Capital gains tax
Capital gains tax | Commentary

C1.207 Partnerships, including limited liability partnerships

Capital gains tax | Commentary

C1.207 Partnerships, including limited liability partnerships

Capital gains tax treatment of UK partnerships

For UK tax purposes, UK partnerships are transparent. See B7.509. This means that where two or more persons carry on a trade or business in partnership or in limited liability partnership (LLP)1:

  1.  

    •     tax in respect of chargeable gains accruing on a chargeable disposal of any partnership asset is charged on the partner/member separately, and

  2.  

    •     any partnership dealings are treated as dealings by the partners/members and not by the firm as such

Although the partnership or LLP is transparent, the partnership tax return and partnership statement must include particulars relevant to chargeable disposals2. See B7.523. Each partner of the partnership/member of the LLP reports their share of the disposal on their tax return and pays tax accordingly.

For the definition of a partnership, see B7.101. Note that for capital

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