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Partnership taxation

Expert commentary and practical guidance from ICAEW on the taxation of partnerships within the UK business tax regime.

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Exclusive

Changes to the cash basis for traders

Richard Jones considers the changes provided for by Finance Bill 2023-24 to the cash basis for trades subject to income tax.
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TAXguide 02/22: Basis Period Reform

This TAXguide provides details of the reform to the taxation of unincorporated businesses introduced through FA 2022 to take effect from April 2024. The TAXguide has also been updated for more recent changes and is up to date as of 10 October 2023.
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Features and articles

ICAEW makes its case for Budget tax measures
  • Article
  • 19 Sep 2024
ICAEW has set out its recommendations for the business tax roadmap to be published at the Budget and has encouraged the government to carry-out a wider review of the tax system. ICAEW's Tax Faculty goes through the details.
Cash basis changes bring many farms into scope
  • Article
  • 12 Sep 2024
The switch to a cash basis in 2024/5 will have a massive impact on taxable profits for many in the farming sector.
LLP salaried member rules: recent changes
  • Article
  • 09 Aug 2024
HMRC has recently changed its guidance regarding salaried members – and it could have significant implications for members of limited liability partnerships.
Exclusive HMRC changes its mind on the salaried member rules
  • Article
  • 03 Jul 2024
Andrew Constable looks at a recent change to HMRC’s guidance, which could have significant implications for members of limited liability partnerships.

Bloomsbury Accounting and Tax Service

Eligible firms have free access to Bloomsbury Professional's comprehensive online library, comprising around 80 titles from some of the country's leading tax and accounting subject matter experts. Find out who is eligible and how you can access the Accounting and Tax Service.

Exclusive A-Z of business tax deductions
  • eBook
  • 2024
  • Annette Morley, Nicola Moore
  • A to Z of Business Tax Deductions
A- Z guide on the deductability for tax purposes of particular expenses incurred by sole traders, partnerships and LLPs.
Exclusive Partnership tax returns, enquiries and administration
  • eBook chapter
  • 2024
  • David Whiscombe
  • Partnership Taxation
A chapter on partnership tax returns and related matters. Includes coverage of filing dates, allocations of ‘partnership share’, enquiry procedures, and penalties which may be imposed.
Exclusive Partnership taxation
  • eBook
  • 2024
  • David Whiscombe
  • Partnership Taxation
A comprehensive examination of the law and best practice relating to the taxation of partnerships in the UK.
Exclusive Business Asset Disposal Relief (previously Entrepreneurs’ Relief)
  • eBook chapter
  • 2024
  • David Whiscombe
  • Partnership Taxation
Chapter providing expert guidance on business asset disposal relief (previously called entrepreneurs’ relief) in relation to a business partnership.
Exclusive Capital allowances
  • eBook chapter
  • 2024
  • David Whiscombe
  • Partnership Taxation
Chapter providing expert guidance on capital allowances in relation to partnership taxation.
Exclusive Limited Liability Partnerships
  • eBook chapter
  • 2024
  • David Whiscombe
  • Partnership Taxation
A chapter considering the characteristics of limited liability partnerships (LLPs), and their implications for tax purposes. The author outlines the benefits and difficulties associated with operating through an LLP.
Exclusive Spouses, civil partners and family partnerships
  • eBook chapter
  • 2024
  • David Whiscombe
  • Partnership Taxation
Chapter providing expert guidance on dealing with spouses, civil partners and family partnerships in relation to partnership taxation.
Exclusive IR35, Managed Service Companies and Off Payroll Working
  • eBook chapter
  • 2024
  • David Whiscombe
  • Partnership Taxation
Concise chapter providing expert guidance on the IR35 rules in the circumstances of a business partnership, including LLPs.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the Acceptable usage terms.

See all Bloomsbury eBooks on partnership taxation

eBooks

The Library & Information Service provides a collection of eBooks as a benefit of membership. Please log in to access these titles. If you are unable to access an eBook, please see our Help and support or contact library@icaew.com.

Exclusive Partnerships and Capital Gains Tax
  • eBook chapter
  • 2023
  • Malcolm James
  • Spiramus
  • Taxation of Small Businesses
An overview of the treatment of capital gains by partnerships covering distribution of assets in kind amongst partners, changes in profit sharing ratios, adjustment through the accounts, payments outside the accounts, transfers between persons not at arm's length, disposals -annuity payments, shares acquired in stages and roll-over relief.
Exclusive Change in partnership profit sharing ratios
  • eBook chapter
  • 2023
  • Malcolm James
  • Spiramus
  • Taxation of Small Businesses
When the profit ratios of a partnership change it may result in a chargeable gain for CGT purposes, due to the acquisitions and disposals of the incoming and/or outgoing partners. A worked example demonstrates how to calculate the chargeable assets arising from this, and from the revaluation of a partnership asset.
Exclusive Partnerships
  • eBook chapter
  • 2023
  • Malcolm James
  • Spiramus
  • Taxation of Small Businesses
A full chapter on the taxation of partnerships, including limited partnerships and LLPs. It focuses mainly on Income Tax, but includes a detailed subsection on Capital Gains Tax.
Terms of use

You are permitted to access, download, copy, or print out content from eBooks for your own research or study only, subject to the terms of use set by our suppliers and any restrictions imposed by individual publishers. Please see individual supplier pages for full terms of use.

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Articles and books in the ICAEW Library collection

The collection of the ICAEW Library & Information Service includes a range of articles, books and reports on partnership taxation. A selection of books on this topic is set out below.
Taxation of partnerships and private capital structures, 2nd ed.
  • Library book
  • 2024
  • D. Crossley, M. Baldwin
  • Sweet & Maxwell
An in-depth guide to the technical and practical UK tax issues around trading and professional partnerships and LLPs, as well as investment fund partnerships and related structures. Also covered are the associated special regimes, such as those for disguised investment management fees, carried interest and income-based carried interest.
Family investment LLPs
  • Library book
  • 2024
  • A. Pink, P. Dickinson
  • Pink Proactive Publishing
A guide to using Limited Liability Partnerships (LLPs) as a flexible and highly tax-efficient way of holding investments.
Lindley and Banks on partnership, 21st ed.
  • Library book
  • 2022
  • R. C. I'Anson Banks
  • Thomson Reuters
A comprehensive practical guide to the law relating to both general and limited partnerships. Covers various topics, including the nature and formation of partnerships, partnership agreements, the liabilities undertaken by partners, partnership taxation, and dissolution, winding up and insolvency.
Taxation of partnerships, 2nd ed.
  • Library book
  • 2022
  • P. Howard
  • Claritax
A practical guide to partnership tax issues, covering income tax, capital gains tax, SDLT, corporation tax. It clearly explains the taxation principles which apply to different sorts of partnerships, including LLPs, limited partnerships and partnerships with corporate members.
Taxation of partnerships and LLPs
  • Library book
  • 2021
  • D. Crossley, M. Baldwin
  • Sweet & Maxwell
An in-depth guide to technical and practical UK tax issues relating to all types of partnerships and LLPs, and the associated special regimes.
The law of limited liability partnerships, 5th ed.
  • Library book
  • 2021
  • J. Whittaker, J. Machell, et al.
  • Bloomsbury Professional
A comprehensive guide to the law of LLPs in England and Wales, aimed at all those who advise on the legal and taxation aspects of incorporating and running an LLP.

To find out how you can borrow books from the Library please see our guide to borrowing books.

You can obtain copies of articles or extracts of books and reports through our document supply service.

Representations

ICAEW REP 050/23 Expanding the cash basis
  • Representation
  • 31 May 2023
  • PDF (250kb)
A representation dated 30 May 2023 to a consultation published by HMRC on 15 March 2023.
ICAEW REP 036/23 The Reporting on Payment Practices and Performance Regulations
  • Representation
  • 04 May 2023
  • PDF (289kb)
A representation dated 3 May 2023 to a consultation published by the UK Government in January 2023.
ICAEW REP 77/21: Basis Period Reform
  • Representation
  • 31 Aug 2021
  • PDF (313kb)
Pushing through proposals to change basis periods ahead of the expansion of Making Tax Digital will cause as many problems as it solves and would be a backwards step for affected businesses, warns ICAEW in its response to HMRC's consultation on aligning basis periods with the tax year. ICAEW has urged the government not to implement to proposals.
ICAEW REP 66/21 Timely payment
  • Representation
  • 13 Jul 2021
  • PDF (300kb)
In responding to HMRC's call for evidence on timely payment, ICAEW argues that earlier payment of income and corporation tax should not be considered until the economy has recovered and that earlier payment should not be based on in-year estimates without HMRC first demonstrating that they can be a reliable basis for earlier payment.

Useful links

Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.

Self Assessment: detailed information on GOV.UK
  • Website
  • GOV.UK
Information, guidance and forms relating to various aspects of the Self Assessment system.
Changes to reporting income from self employment and partnerships
  • Website
  • HMRC
Guidance from HMRC on the new tax year basis (also known as Basis Period Reform), which applies from 6 April 2023.
Partnership Manual
  • Website
  • HMRC
HMRC internal manual providing guidance on business partnerships and how they are taxed in the UK. It covers Self Assessment, calculating taxable profits, mixed member partnerships and international aspects, LLPs, and other tax obligations.
PSC requirements for companies and limited liability partenerships
  • Website
  • HM Government
Guidance for companies, limited liability partnerships (LLPs) and eligible Scottish partnerships on the register of people with significant control (PSC) requirements.
Terms of use

ICAEW accepts no responsibility for the content on any site to which a hypertext link from this site exists. The links are provided ‘as is’ with no warranty, express or implied, for the information provided within them. Please see the full copyright and disclaimer notice.

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Some of the content on this web page was provided by the Chartered Accountants’ Trust for Education and Research, a registered charity, which owns the library and operates it for ICAEW.