The partnership business model is used in many business combinations, ranging from straightforward situations where a group of individuals carry on a trading or professional enterprise together through to extremely complex structures involving both companies and individuals, or indeed partnerships of partnerships.
A partnership is still the preferred business structure for most professional firms such as lawyers, architects, surveyors and accountants and the issues arise at each stages in the life cycle of being in a partnership, ranging from opening year rules on commencement to the taxation of disposals of goodwill on retirement.
Overlay that with the various legal forms – general partnerships, overseas partnerships, limited partnerships and limited liability partnerships – each governed by different legal principles but treated for most tax purposes as fiscally transparent, and it becomes clear that specialist advice is essential in negotiating the many traps for the unwary nestling in some of the most obtuse provisions of the tax code.
Our Partnerships and LLPs Tax Team has been providing expert advice in this area for many years, developing leading edge tax solutions for a variety of applications across a range of sectors. Our focus is on helping you to understand, and then to manage your tax risks, and to advise you so as to ensure that you pay the right amount of tax in accordance with the law, taking account of your risk profile and your commercial circumstances.