| PM00100 |
PM100000 |
About this manual |
| PM10000 |
PM120000 |
Introduction to Partnerships: contents |
| PM10100 |
PM120100 |
What is a partnership? |
| PM10200 |
PM130000 |
Partnership general: contents |
| PM10200 |
PM133000 |
Does a partnership exist? |
| PM10300 |
PM134000 |
When does a partnership commence? |
| PM10500 |
PM132050 |
Partners: Overview |
| PM10500 |
PM132400 |
Husbands, wives, civil partners and minors |
| PM10600 |
PM131000 |
Overview of types of partnership: contents |
| PM10700 |
PM136000 |
Taxing the profits of a business carried on in partnership |
| PM10800 |
PM137000 |
Profit sharing arrangements |
| PM10900 |
PM138000 |
How partners are taxed |
| PM11010 |
PM163155 |
Notional trade and basis period |
| PM11020 |
PM163160 |
Notional trade and basis period - sole trader and partnership changes |
| PM11030 |
PM163170 |
Partnership mergers and demergers |
| PM11040 |
PM163180 |
Accounting date changes |
| PM11050 |
PM163190 |
Trading profits: overlap |
| PM11100 |
PM139000 |
Non trade profits |
| PM20010 |
PM141000 |
Legal framework |
| PM20100 |
PM142000 |
Registration of partnerships with HMRC |
| PM20150 |
PM145140 |
Overseas partners in investment partnerships |
| PM20200 |
PM143000 |
The Nominated/Representative Partner |
| PM20300 |
PM144000 |
Linking partners to the partnership |
| PM20400 |
PM145000 |
The Partnership Return: contents |
| PM20410 |
PM145100 |
Requirements |
| PM20420 |
PM145200 |
Standard Accounts Information (SAI) or full accounts and computations |
| PM20430 |
PM145300 |
Operational guidance |
| PM20500 |
PM146000 |
Partners’ Returns: contents |
| PM20510 |
PM146100 |
Returning the partners profit share |
| PM20520 |
PM146200 |
Composite returns for individual non-UK resident partners |
| PM20600 |
PM147000 |
Filing date for partnership return |
| PM20700 |
PM148000 |
Late filing penalties |
| PM20800 |
PM149000 |
Compliance checks: contents |
| PM20810 |
PM149100 |
Introduction |
| PM20820 |
PM149200 |
Review and liaison |
| PM20830 |
PM149300 |
Opening a compliance check |
| PM20840 |
PM149400 |
Information powers |
| PM20850 |
PM149500 |
Settling partnership enquiries |
| PM20860 |
PM150000 |
Disputes between partners |
| PM20865 |
PM151000 |
Interaction of disputes mechanism and enquiry processes |
| PM255630 |
PM255900 |
Profit share: contents |
| PM30000 |
PM140000 |
Self Assessment for Partnerships: contents |
| PM30100 |
PM163070 |
Steps to calculate the partnership trading profits |
| PM30200 |
PM161000 |
Accounting profits |
| PM30400 |
PM163330 |
Overriding principle on payments to partners |
| PM30500 |
PM163300 |
Interest paid by the partnership |
| PM30600 |
PM163280 |
Rent |
| PM30700 |
PM163290 |
Service companies |
| PM30800 |
PM163310 |
Partner recruitment costs |
| PM30900 |
PM163320 |
Partner training costs |
| PM31000 |
PM163440 |
Termination payments |
| PM31100 |
PM163400 |
Partnership annuities: contents |
| PM31110 |
PM163405 |
The partnership |
| PM31120 |
PM163410 |
Current partners |
| PM31130 |
PM163420 |
Retired partners |
| PM31200 |
PM163450 |
Costs connected with the capital structure of a business |
| PM31400 |
PM191100 |
Claims and elections: contents |
| PM31500 |
PM163040 |
Allocation of profits and losses |
| PM31600 |
PM163200 |
Capital allowances: contents |
| PM31610 |
PM163210 |
Claims for capital allowances on partnership assets |
| PM31620 |
PM163220 |
Partnership changes |
| PM31630 |
PM163230 |
Connected persons |
| PM31640 |
PM163240 |
The Annual Investment Allowance (AIA) |
| PM31650 |
PM163250 |
Leasing |
| PM40000 |
PM210000 |
Mixed member partnerships: contents |
| PM40100 |
PM211000 |
Companies in partnership: contents |
| PM40210 |
PM211050 |
Companies in partnership |
| PM40220 |
PM211100 |
Computation and allocation of profits |
| PM40230 |
PM211200 |
Difference in treatment between individuals and non-individuals |
| PM40240 |
PM211400 |
Loans to participators |
| PM40300 |
PM212000 |
Company partners and tax mitigation |
| PM40420 |
PM281100 |
UK resident members |
| PM40440 |
PM281200 |
Non-resident members: individuals |
| PM40460 |
PM281300 |
Non-resident members: companies |
| PM40465 |
PM281400 |
Non-resident company members trading in the UK |
| PM40470 |
PM281500 |
Non-resident company members not trading in the UK |
| PM40600 |
PM283000 |
Management and control |
| PM40700 |
PM284000 |
Where are the profits earned? |
| PM40800 |
PM285000 |
Composite SA returns for non-resident individual members |
| PM40900 |
PM286000 |
Investment partnerships |
| PM41000 |
PM287000 |
UK registered partnerships with no UK source |
| PM41100 |
PM288000 |
Tax status of overseas partnerships |
| PM41200 |
PM289000 |
UK branches of overseas partnerships |
| PM41300 |
PM290000 |
Summary of filing requirements for partnerships with foreign aspects |
| PM41400 |
PM291000 |
Double taxation |
| PM41500 |
PM292000 |
Hybrid entities and tax arbitrage |
| PM50010 |
PM131200 |
Introduction |
| PM50100 |
PM131310 |
Limited partnership: overview |
| PM50300 |
PM131330 |
Venture Capital/Private Equity and the BVCA agreement |
| PM50500 |
PM131340 |
Private Fund limited partnerhsips |
| PM50500 |
PM131480 |
Statutory provisions for tax transparency: contents |
| PM50510 |
PM131485 |
Tax transparency ‘switched on’ |
| PM50520 |
PM131490 |
Tax transparency ‘switched off’ |
| PM50550 |
PM131570 |
Liquidations |
| PM50600 |
PM131430 |
LLP: conversions |
| PM50800 |
PM131380 |
Distinct legal personality and Taxes Management provisions |
| PM50900 |
PM131390 |
Nominee members |
| PM60000 |
PM270000 |
Indirect, Capital and Transfer Taxes and Other tax obligations: contents |
| PM60100 |
PM271000 |
VAT and partnerships: contents |
| PM60110 |
PM271200 |
VAT and the existance of a partnership |
| PM60120 |
PM271300 |
VAT registration and liability |
| PM60130 |
PM271400 |
Partner changes |
| PM60140 |
PM271500 |
Group VAT registration and Partnerships |
| PM60150 |
PM271600 |
VAT position of partnership contributions |
| PM60160 |
PM271700 |
VAT avoidance using partnerships |
| PM60200 |
PM272000 |
Capital gains: contents |
| PM60205 |
PM272100 |
Capital gains - introduction |
| PM60210 |
PM272200 |
Goodwill |
| PM60220 |
PM272300 |
Capital gains reliefs |
| PM60300 |
PM273000 |
Stamp Duty Land Tax (SDLT): contents |
| PM60310 |
PM273200 |
SDLT and Partnerships |
| PM60320 |
PM273300 |
Special partnership provisions |
| PM60330 |
PM273400 |
SDLT avoidance |
| PM60400 |
PM274000 |
Inheritance Tax (IHT): contents |
| PM60410 |
PM274200 |
General transparency principle |
| PM60420 |
PM274300 |
Transfers of partnership assets |
| PM60430 |
PM274400 |
Valuing the partnership interest |
| PM60440 |
PM274500 |
Situs of partnership interest |
| PM60450 |
PM274600 |
Business Property Relief |
| PM60460 |
PM274700 |
Family Limited Partnerships |
| PM60500 |
PM275000 |
PAYE and National Insurance: contents |
| PM60510 |
PM275200 |
PAYE |
| PM60515 |
PM275300 |
National Insurance Contributions (NICs) |
| PM60520 |
PM275400 |
Class 4 NIC relief for partner’s losses |
| PM60525 |
PM275500 |
Employers Class 1 NICs |
| PM60600 |
PM276000 |
Construction Industry Scheme (CIS) |
| PM60700 |
PM277000 |
Deduction of Income Tax at source |
| Original Business Income Manual reference |
New Reference |
Page Title |
| BIM82005 |
PM132200 |
Who is a partner? |
| BIM82005 |
PM133000 |
Does a partnership exist |
| BIM82020 |
PM132300 |
Capacity of partners |
| BIM82025 |
PM132100 |
Types of partner |
| BIM82035 |
PM131700 |
Scottish Partnerships |
| BIM82040 |
PM134100 |
Partnerships - formation |
| BIM82045 |
PM134200 |
Partnerships - dissolution |
| BIM82050 |
PM134300 |
Death or retirement of partner |
| BIM82058 |
PM163270 |
Property |
| BIM82065 |
PM132200 |
Who is a partner? |
| BIM82075 |
PM163350 |
Partners’ personal expenses |
| BIM82080 |
PM163360 |
Expenses paid by partners |
| BIM82085 |
PM163370 |
Partnerhip advances funds to partners |
| BIM82090 |
PM163380 |
Partners in disagreememnt |
| BIM82095 |
PM163390 |
Partner expenses- legal basis |
| BIM82100 |
PM131400 |
Limited liability partnerships: contents |
| BIM82101 |
PM131310 |
Limited partnership: overview |
| BIM82105 |
PM131320 |
Limited partnership: restriction of relief for limited partners |
| BIM82110 |
PM131410 |
LLP: overview |
| BIM82110 |
PM131420 |
LLP types of member |
| BIM82112 |
PM131440 |
LLP: agreement |
| BIM82115 |
PM131450 |
LLP: taxation |
| BIM82120 |
PM131460 |
LLP: compliance |
| BIM82125 |
PM131470 |
LLP: computation of profits |
| BIM82130 |
PM131500 |
LLP: partners interest relief |
| BIM82135 |
PM131520 |
LLP: restriction of relief for LLP members |
| BIM82140 |
PM131530 |
LLP: partners’ basis periods, losses and overlap relief |
| BIM82145 |
PM131540 |
LLP: international aspects |
| BIM82150 |
PM131550 |
LLP: NIC |
| BIM82155 |
PM131560 |
LLP: property investment LLP |
| BIM82160 |
PM131600 |
EEIGs: background information |
| BIM82200 |
PM160000 |
Calculating the taxable profits/allowable losses: contents |
| BIM82200 |
PM162000 |
Computation and assessment: contents |
| BIM82210 |
PM163010 |
Profits and losses computed at partnership level |
| BIM82215 |
PM191200 |
Claims and elections affecting partnership profits |
| BIM82220 |
PM191300 |
Claims and elections affecting partner’s tax liability |
| BIM82225 |
PM163020 |
Changes of partners |
| BIM82230 |
PM209000 |
Changes of partners: loss relief |
| BIM82235 |
PM163030 |
Iindividual, company and non-resident members |
| BIM82245 |
PM163050 |
An allocation must not create or increase a loss |
| BIM82250 |
PM163060 |
Allocation examples of profits and losses |
| BIM82255 |
PM163080 |
Partner’s notional trade |
| BIM82260 |
PM163090 |
Commencement and cessation |
| BIM82265 |
PM163100 |
Basis period rules |
| BIM82270 |
PM163110 |
Change of partnership accounting date |
| BIM82275 |
PM163470 |
Computation of income |
| BIM82280 |
PM163480 |
Allocation of income |
| BIM82285 |
PM163490 |
Partner’s basis periods |
| BIM82295 |
PM163510 |
Partner’s basis period: untaxed income |
| BIM82295 |
PM163520 |
Partner’s basis period: taxed income |
| BIM82300 |
PM163530 |
Partner’s basis period: losses |
| BIM82305 |
PM163120 |
Effect of changes in membership on partner’s basis periods |
| BIM82310 |
PM163540 |
Overlap relief |
| BIM82315 |
PM163550 |
Losses and overlap relief |
| BIM82320 |
PM163130 |
Investment business: partner’s basis period |
| BIM82330 |
PM163140 |
Examples of partnership computations |
| BIM82340 |
PM163150 |
Examples of partnership computations with indirect partners |
| BIM82400 |
PM135000 |
Partnerships: mergers & demergers: contents |
| BIM82405 |
PM135100 |
Mergers and demergers: Overview |
| BIM82410 |
PM135200 |
Cessation of previous businesses and commencement of new business |
| BIM82415 |
PM135300 |
Previous businesses continue as a merged joint business |
| BIM82420 |
PM135400 |
Cessation of one business and the continuation of the other business |
| BIM82425 |
PM135500 |
Mergers: Example |
| BIM82430 |
PM135600 |
Demergers: Overview |
| BIM82435 |
PM135700 |
Mergers and demergers: Text of Statement of Practice 9/86 |
| BIM82600 |
PM190000 |
Partnership loss claims and restrictions: Contents |
| BIM82601 |
PM191000 |
Introduction |
| BIM82610 |
PM192000 |
Calculation of limit of relief: partners’ capital contributions |
| BIM82611 |
PM193000 |
Calculation of limit of relief: £25,000 annual limit |
| BIM82615 |
PM194000 |
Limited partners |
| BIM82620 |
PM195000 |
Limited partners: example |
| BIM82625 |
PM196000 |
LLP members |
| BIM82630 |
PM197000 |
LLP members: example |
| BIM82635 |
PM198000 |
Unrelieved amounts |
| BIM82640 |
PM199000 |
Non-active partners in early tax years |
| BIM82645 |
PM200000 |
Non-active partners in early tax years: example |
| BIM82650 |
PM201000 |
Non-active partners: unrelieved amounts |
| BIM82655 |
PM202000 |
Risk-free capital contributions |
| BIM82660 |
PM203000 |
Cost of contribution financed by loan |
| BIM82665 |
PM204000 |
Cost of contribution reimbursed to partner |
| BIM82670 |
PM205000 |
Exemptions |
| BIM82675 |
PM206000 |
Recovery of excess relief |
| BIM82680 |
PM207000 |
Recovery of excess relief: example |
| BIM82685 |
PM208000 |
Licence-related losses: exit charge |
| BIM82710 |
PM214000 |
Overview |
| BIM82720 |
PM216000 |
Who is a non-individual partner? |
| BIM82725 |
PM217000 |
When do the rules apply? |
| BIM82730 |
PM218000 |
Condition X |
| BIM82740 |
PM219000 |
Condition Y |
| BIM82745 |
PM220000 |
Appropriate notional profit |
| BIM82750 |
PM221000 |
The appropriate notional return on capital |
| BIM82760 |
PM222000 |
The appropriate notional consideration for services |
| BIM82765 |
PM223000 |
Appropriate notional consideration for services: restriction |
| BIM82770 |
PM224000 |
The power to enjoy |
| BIM82775 |
PM225000 |
Connected parties |
| BIM82780 |
PM226000 |
Arrangements to secure corporation tax rather than income tax treatment |
| BIM82785 |
PM227000 |
Enjoyment conditions |
| BIM82790 |
PM228000 |
Is the profit share influenced by the power to enjoy? |
| BIM82800 |
PM229000 |
Relevant tax amount |
| BIM82805 |
PM230000 |
Reallocations: individuals |
| BIM82810 |
PM231000 |
Reallocations: non-individuals |
| BIM82815 |
PM232000 |
Payments by the non-individual out of its reallocated profit share |
| BIM82825 |
PM233000 |
Interaction with AIFM deferral arrangements |
| BIM82830 |
PM234000 |
Anti-avoidance |
| BIM82850 |
PM235000 |
Other related guidance |
| BIM82855 |
PM236000 |
Businesses transferred to the partnership |
| BIM82860 |
PM237000 |
Businesses transferred to the partnership: Examples |
| BIM82870 |
PM238000 |
Takeover of the LLP |
| BIM82880 |
PM239000 |
Private equity investment |
| BIM82890 |
PM240000 |
Share issues |
| BIM82900 |
PM241000 |
Pseudo share schemes/membership benefit schemes |
| BIM82910 |
PM242000 |
International structures |
| BIM82945 |
PM243000 |
Excess profit allocation: Commencement |
| BIM82950 |
PM244000 |
Excess loss allocation rules |
| BIM82955 |
PM245000 |
When do the restrictions apply? |
| BIM82960 |
PM246000 |
The effect of the restrictions? |
| BIM82965 |
PM247000 |
Transitional Provisions |
| Original Employment Status Manual reference |
New Reference |
Page Title |
| ESM60005 |
PM251000 |
Overview |
| ESM60025 |
PM253000 |
Who can be a salaired member? |
| ESM60025 |
PM254000 |
Tests to use |
| ESM61000 |
PM255000 |
Condition A- disguised salary: contents |
| ESM61005 |
PM255100 |
Condition A- overview |
| ESM61025 |
PM255400 |
When to apply condition A |
| ESM61015 |
PM255200 |
Relevant arrangments |
| ESM61020 |
PM255300 |
Relevant period |
| ESM61030 |
PM255500 |
Reasonable to expect |
| ESM61035 |
PM255605 |
Introduction |
| ESM61040 |
PM255610 |
Piecework |
| ESM61045 |
PM255620 |
Fees Generated |
| ESM61050 |
PM255305 |
Overview |
| ESM61055 |
PM255310 |
Personal Performance |
| ESM61060 |
PM255640 |
Divisions Of A Business |
| ESM61065 |
PM255650 |
Guaranteed Payments/Floors |
| ESM61070 |
PM255660 |
Caps On Profit Shares |
| ESM61075 |
PM255670 |
Drawings On Account Of Profit Share Or Disguised Salary |
| ESM61085 |
PM255910 |
Overview |
| ESM61090 |
PM255680 |
Disguised Salary: Profit Share realistic view |
| ESM61095 |
PM255920 |
Share: Unexpected Events |
| ESM61100 |
PM255930 |
Share: Benchmark |
| ESM62000 |
PM256000 |
Condition B- Significant influence: contents |
| ESM62005 |
PM256100 |
Overview |
| ESM62015 |
PM256200 |
The LLP agreement |
| ESM62020 |
PM256300 |
What type of influence is relevant to the test? |
| ESM62025 |
PM256400 |
Functions of financial businesses regulated by Financial Conduct Authority (FCA) |
| ESM62030 |
PM256500 |
Significance of size |
| ESM62035 |
PM256600 |
Hierarchy of members |
| ESM62040 |
PM256700 |
Delegated powers |
| ESM62045 |
PM256800 |
Part of a business |
| ESM62050 |
PM256900 |
Indirect influence? |
| ESM62055 |
PM257000 |
LLPs that are parents of a group |
| ESM62060 |
PM257100 |
LLPs that are members of a group |
| ESM62070 |
PM257200 |
Change in circumstances |
| ESM63000 |
PM258000 |
Condition C- conribution to the LLP: contents |
| ESM63005 |
PM258100 |
Overview |
| ESM63010 |
PM258200 |
What is the contribution? |
| ESM63020 |
PM258300 |
When to apply the test? |
| ESM63025 |
PM258400 |
Becoming, or ceasing to be, a member part way through the year |
| ESM63030 |
PM258500 |
A change in the contribution part way through the year: contents |
| ESM63035 |
PM258510 |
A Reduction In The Contribution |
| ESM63040 |
PM258520 |
An Increase In The Contribution |
| ESM63045 |
PM258600 |
Deemed contributions |
| ESM63050 |
PM258700 |
Failure To Make The Payment |
| ESM64000 |
PM259000 |
Anti-avoidance: contents |
| ESM64005 |
PM259100 |
Overview |
| ESM64010 |
PM259200 |
Becoming a member |
| ESM64015 |
PM259305 |
Overview |
| ESM64020 |
PM259310 |
Anti-Avoidance: Genuine Finance |
| ESM64025 |
PM259320 |
Anti-Avoidance: Non-Recourse Loans |
| ESM64030 |
PM259330 |
Anti-Avoidance: Connected Party Finance |
| ESM64035 |
PM259340 |
Anti-Avoidance: Combined Loan Facilities |
| ESM64040 |
PM259400 |
Short term appointment |
| ESM64045 |
PM259500 |
Use of intermediaries |
| ESM64050 |
PM259600 |
Interaction with mixed membership partnership legislation |
| ESM65000 |
PM260000 |
Implementation matters: contents |
| ESM65015 |
PM260200 |
When an individual is treated as a salaried member |
| ESM65020 |
PM260300 |
Compliance & PAYE |
| ESM65025 |
PM260400 |
Capital assets |
| ESM65030 |
PM260500 |
Interest relief |
| ESM65035 |
PM260600 |
Auto-enrolment |
| ESM66000 |
PM261100 |
Global structures |
| ESM66005 |
PM261200 |
Overseas members |
| ESM66010 |
PM261300 |
Working for the UK LLP |
| ESM66015 |
PM261500 |
Profits from the UK LLP |
| ESM66020 |
PM261700 |
Condition A: global profits |
| ESM66025 |
PM261800 |
Cash plus basis |
| ESM66030 |
PM261400 |
Income from other firms |
| ESM66035 |
PM261900 |
Significant influence |
| ESM66040 |
PM261600 |
Capital of the LLP |