The 50/50 rule - partnership income
Trading or professional income
The 50/50 rule does not apply to partnership income. If a spouse or civil partner is in partnership, the allocation of the partnership trading or professional income is decided in the normal way by the partnership agreement. This applies to partnerships between husband and wife and between civil partners as well as partnerships where others are involved.
Note that in certain circumstance we may consider applying the Settlements legislation to income from partnerships involving married couples or civil partners (see TSEM4215).
The 50/50 rule does not apply to trading or professional income of a sleeping partner - see the guidance in the Business Income Manual on the HMRC Website
Partnership investment income
Note that the 50/50 rule does apply to partnership investment income (that is where a husband and wife or civil partners of each other are both members of the same partnership).