Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

VAT Registration

From
HM Revenue & Customs
Updated
, see all updates

Entity to be registered: partnerships: joint ownership of land - effect on limited partnerships

A limited partnership cannot own land and property. Therefore, where title to property is held jointly in the names of both the general and the limited partners, it will normally be as a general partnership, separate and distinct from any limited partnership they may have.

This may mean that the limited partnership will need to be reclassified as an ordinary partnership. On the other hand, the result may be that those individuals who jointly own the property should be registered separately from the rest of the limited partnership activities.

Where property is jointly owned by all of the partners in the limited partnership (both general and limited), the limited partnership must be registered as a normal partnership and a VAT 2 or equivalent notification, signed by all the general and limited partners, must be obtained.

You may come across this situation when property which has been let for commercial use is owned by the partnership of general and limited partners, but managed by the limited partnership.