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HMRC internal manual

Debt Management and Banking Manual

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HM Revenue & Customs
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Debt and return pursuit: Climate Change Levy: Who is liable to pay the debt? Partners

Partnerships may register in their own right for AL.

Section 9 of the Partnership Act 1890, provides:

“Every partner in a firm is liable jointly with the other partners, and in Scotlandseverally also

for all debts and obligations of the firm incurred while he is a partner; and after hisdeath his estate is also severally liable in a due court of administration for such debtsand obligations,

so far as they remain unsatisfied, but subject in England or Ireland to the prior paymentof his separate debts.”

Partnerships may consist of a combination of individuals, partnerships or companies.

The procedure is as for recovery of a VAT debt.

Partner leaves

Where a partnership continues to trade but a partner ceases to be a member of thepartnership, his liability for partnership CCL debts continues until the date on which wereceive notification of the change in the membership (paragraph 117 (3) of Schedule 6 tothe Finance Act 2000).

If necessary, we will calculate any partner’s liability on a daily basis to the dateof leaving.

Paragraph 117 (7) of Schedule 6 to the Act provides:

“ Where a person is a partner in a firm during part only of an accounting period, hispersonal liability for levy incurred by the firm in respect of taxable supplies made inthat period shall include, but shall not exceed, such proportion of the firm’sliability as may be just and reasonable in the circumstances.”

Assessments and other documents served on the partnership since the partner left are alsoserved on the partner (paragraphs 117 (4) and (5) of Schedule 6 to the Finance Act 2000).This is only for the period when the partner was a member of the partnership.