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HMRC internal manual

Property Income Manual

Property allowance: contents: exclusions from relief: partnerships

No relief is due to an individual if the individual has relevant property income for the tax year and the income includes a payment made by, or on behalf of, a firm when the individual is a partner in the firm, or connected with a partner in the firm.

For more information regarding the existence of a partnership see the existence of a partnership at page BIM82005.

For the purposes of this exclusion a person is connected to another person if they are that person’s

  • spouse or civil partner

  • brother and sister

  • ancestors

  • lineal descendants

  • spouse’s or civil partner’s brother and sister

  • spouse’s or civil partner’s ancestors

  • spouse’s or civil partner’s lineal descendants

These are the most common examples, but a full list can be found in the legislation at ITA07/S993.

Existence of a Partnership

More information regarding the existence of partnerships can be found in HMRC’s Business Income Manual at BIM82005.