PM131800 - Relations that do not constitute a partnership

Not all associations between persons for business purposes constitute partnerships. An arrangement which falls short of a partnership is often called a joint venture. Business associates may claim that their relationship is only a joint venture and not a partnership. It is most likely that you have a joint venture and not a partnership in cases:

• where two or more persons, already carrying on a business of their own, co-operate in some way on a single projectbut

• do not calculate and share the net profits or losses resulting from this.Further guidance on joint ventures is available at BIM82010.

  The letting of jointly owned property does not normally constitute a partnership. Most cases will fall short of the degree of business organisation needed to constitute a business. The provision of significant additional services in return for payment may be an indicator of such business organisation. Additional guidance is available at PIM1030