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Chapter EM7001

Document Cited authorities 1 Cited in Related
Vincent
Published date12 April 2016
Record NumberEM7001
CourtHM Revenue & Customs
IssuerHM Revenue & Customs

ICTA 88/S111 (old)

ITTOIA05/PART9

ITSA Years (but see below for transitional years)

Partnerships are responsible for returning information relating to the partnership business. This information includes the profits for any period of account, the capital allowances claimed for that period and details of the profit allocation in force for that period.

But for the purposes of assessment and payment of tax, partnerships are not treated as a legal entity separate and distinct from the individual persons making up the partnership and the Income Tax rules operate on the partners as if the partnership did not exist.

There are no partnership assessments under SA. Instead each partner is allocated a share of the partnership profits (or losses). Those profits (or losses) are treated as if they had arisen to the partner as an individual in business. The partnership is not responsible for paying the tax on the partnership profits. Each partner is solely responsible for the tax due on his or her share.

Individual partners are therefore required to include their share of any partnership profits in their own returns of total income and in their own self-assessments.

Pre ITSA Years

A partnership does not, in English law, constitute a...

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