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HMRC internal manual

Partnership Manual

From
HM Revenue & Customs
Updated
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Calculating the taxable profits: Capital Allowances: leasing

Special rules apply when a leasing business is carried on by companies in partnership. It is worth noting that many leasing businesses carried on in partnership will have been set up with a view to avoiding tax. The avoidance usually takes place about 6 years after the partnership business has been set up, when the losses have all been used and the profitable partner wants to avoid the deferred tax. This subject is covered in detail at BLM81000.