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Home / Simons-Taxes /Business tax /Part B7 Partnerships /Division B7.1 What is a partnership? /Definition of a partnership / B7.102 Establishing whether a partnership exists
Commentary

B7.102 Establishing whether a partnership exists

Business tax

There is no one single factor that determines whether a partnership exists, as it is a combination of several different factors. However, the following points will usually have to be considered when establishing if a partnership exists:

  1. Ìý

    •ÌýÌýÌýÌý Is the partnership carrying on a business in common with a view to profit?

  2. Ìý

    •ÌýÌýÌýÌý Is the partnership a partnership or simply the joint ownership of property?

  3. Ìý

    •ÌýÌýÌýÌý Do the profit sharing terms indicate a partnership arrangement?

  4. Ìý

    •ÌýÌýÌýÌý Is there any documentary evidence supporting the existence of a partnership?

Carrying on a business in common with a view to profit

To fall within the definition of a partnership, the partners must be carrying on a business in common and doing so with a view to a profit. Relevant cases in this area have looked at the two separate parts of this phrase, that is whether the parties are 'carrying on a business with a view to a profit' and whether they are 'carrying on a business in common', the cases are

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