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HMRC internal manual

Partnership Manual

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HM Revenue & Customs
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Introduction to Partnerships and Partnership Taxation: what is a partnership?

Section 1(1) Partnership Act 1890 defines ‘Partnership’ as ‘the relation which subsists between persons carrying on a business in common with a view of profit’.

It is important to note that the term ‘persons’ used within this definition includes natural and artificial persons. In law, a body corporate is a person and may be a member of a partnership. This includes companies and Limited Liability Partnerships (LLPs), which will be discussed further at PM50400 onwards. In England, Wales and Northern Ireland a general partnership (see PM10600) is not a legal person. Under Scottish law, however, partnerships have distinct legal personality, allowing Scottish partnerships to be members of other partnerships.