Admitting a new partner

Produced by Tolley

The following Owner-Managed Businesses guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Admitting a new partner
  • Introduction
  • When does a partner join a partnership?
  • The tax position: background
  • A new partner joins an existing partnership
  • Trading income
  • Untaxed income
  • Taxed income
  • A sole trader takes someone into partnership

Admitting a new partner


This note explains the tax rules that apply when a new partner is admitted to a partnership. For the position when a partner leaves the partnership, see the Retirement of a partner guidance note. A partner joining or leaving a firm can have an effect on the capital allowances or capital gains position, see further the Capital allowances - partnership changes and Capital gains of a partnership guidance notes.

For the rules which apply when the partners stay the same, but there is a change in the profit sharing ratios, see the Allocation of partnership income guidance note.

When does a partner join a partnership?

Popular documents