Partnerships
Use this form to enter details about profits, losses or income from a business which the client carried on in partnership.
Create a separate form for each partnership which the client was a member of and for each business if the partnership carried on more than one business.
Income from Partnerships is taxed as trading income (previously under either Schedule D, Case I or Schedule D, Case II). The main technical difference between the two is the source of taxable profits. The former assesses profits from trades conducted in the UK whereas the latter deals with profits from UK professions and vocations.
This section includes the following tabs. Click on a heading to find out more about the boxes on each tab.
| Option | Description |
|---|---|
| Name | The name of the partnership. |
| Tax Reference | The partnership's unique tax reference (UTR). |
| Tax district | The number and name of the tax district are defaulted if you enter a number in the Tax Reference box. |
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Lookup
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Click this button to search for a tax district. |
| Description of business | For example, 'farming' or 'contracting'. Changes made will be updated in Business Tax and Control Centre as appropriate. |
| Date joined |
The date the client joined the partnership. This date is required on the tax return if it falls within the currently selected tax year. |
| Date left (see below) | The date the client left the partnership. This date is required on the tax return if it falls within the currently selected tax year. |
| Select schedule for entry and printing |
Select Partnership (Short) or Partnership (Full) to determine which supplementary pages are completed. If you select Partnership (Short) when Partnership (Full) has been selected previously, you will be warned that any Overlap profit b/f and Taxed income figures on the Income summary tab will be cleared. The default option is Partnership (Short). |
Entering the date of cessation for a partnership
- In Business Tax, open the client and select the accounting period in which the business ceased.
- From the navigator, select Business Details.
- On the Period Details tab change the Period end date to the date of cessation of the business.
- Tick the Cessation box.
- Click Save.
- Click SA800 on the toolbar to post the data to Partnership Tax.
- In Partnership Tax, select Tools > Transfer Partners’ Data, move the relevant partner(s) to the right hand box, and click Post to update the Partnership sections in Personal Tax.
Note: This automatically updates the leaving date of each partner.
To enter a leaving date for an individual partner
- In Business Tax, open the client and click Details on the toolbar.
- On the Main Details tab, enter the date the partner left the business in the End Date box.
- Click OK. The Refresh from Control Centre window appears.
- Click Update SBT.
- Click SA800 on the toolbar to post the data to Partnership Tax.
- In Partnership Tax, select Tools > Transfer Partners’ Data, move the relevant partner(s) to the right hand box, and click Post to update the Partnership sections in Personal Tax.
Note: For non-standard accounting periods, enter details for the standard period (the accounting period ending in the tax year) and the transitional period (from the day after the standard period ends to 5 April 2024).
| Option | Description |
|---|---|
| Basis period |
This will determine the information requested below. For non-standard accounting periods, enter details for the standard period (the accounting period ending in the tax year) and the transitional period (from the day after the standard period ends to 5 April 2024). Note: Under the new late accounting rules, periods ending between 31 March and 5 April will be treated as ending on 5 April, unless the taxpayer opts to disapply the rules. To apply the late accounting date rules, enter the basis period as 6 April 2023 to 5 April 2024. |
| Cash basis used to calculate income and expenses | Tick this box if the partnership profits are calculated under the cash basis rather than the accruals basis. |
| Share of the partnership's profit or loss | Enter the profit of loss for the period. For the transitional period, this is apportioned amount for part of the period that falls in the tax year. |
| Basis period adjustment | If the accounting period of the partnership is not the same as the basis period, enter the amount of the adjustment to the partnership profits. |
| Foreign tax claimed as a deduction | Enter the client's share of foreign tax deducted where Foreign Tax Credit Relief is not being claimed. |
| Overlap profit used | Any remaining overlap relief must be used during the 2023-24 tax year. |
| Spreading adjustment | Where there is a transitional period, enter the amount of transitional profit to be carried forward to future tax years. |
| Adjustment for change of accounting practice | Enter any adjustment in respect of a change from the cash or accruals basis, or other changes required under financial reporting standards. |
| Averaging adjustment | For farmers, market gardeners or creative artists reporting on the accruals basis, enter any adjustment relating to the averaging of profits. |
All of the details on this page are used in both the Short and Full Partnership supplementary pages.
If there are unrelieved losses and reliefs for the tax year due to the annual limit on income tax reliefs, introduced by Schedule 3 Finance Act 2013, these will be detailed on an appendix to the tax calculation.
| Option | Description |
|---|---|
| Taxable Profit | |
| Adjusted profit for the year | Add figure from the Trading profit page. |
| Losses b/f from earlier years |
Enter the amount of any losses sustained in the same business in a previous tax year which the client brought forward to claim against later profits. You may need to amend this amount to reflect restrictions made to a prior year loss claim arising from the limit on income tax reliefs introduced by FA 2013. |
| Used | Enter the amount of any unused losses sustained in the same business in a previous tax year which the client has not used and have been brought forward and wants to claim against later profits. This cannot be greater than the amount of Adjusted profit for year. |
| Taxable profits after losses brought forward | This is the Adjusted profit for year minus the Loss brought forward and used this year amount. |
| Other business income not included in the accounts | The total of any amounts that have not been included in the client's partnership accounts that are needed to calculate their taxable profits, for example, Enterprise Allowance. |
| Total taxable profits from the business | This is the Taxable profit after losses brought forward amount plus the Other business income not included in the accounts. It is calculated automatically from the information in these boxes and cannot be edited here. |
| Losses | |
| Adjusted loss for the year | This is the total gross amount of loss that the partnership made during the currently selected tax year. It is the total of the relevant figures entered on the Trading Profit page, if this total is a loss. |
| – Set off against other income |
If the client wishes to offset the loss for the currently selected tax year against other income of that year enter the total gross amount that they are claiming to offset. The amount entered may be restricted due to the limit on income tax reliefs introduced by FA 2013. Where the restriction applies, the Tax calculation report will detail the reliefs and losses claimed and the amount offset against total income. If the claim is restricted you can either:
or Note: If you select the second option, the amount that can be claimed may be revised if there are subsequent additions or changes to other amounts on the tax return and you may need to update the amount claimed. |
| – Set off against capital gains | This is not available where the cash basis has been selected. You can change whether to select the cash basis on the Trading Profit page. |
| – To be carried back |
If the client wishes to offset the loss for the currently selected tax year against income of an earlier tax year enter the total gross amount of the loss that they are claiming to offset. For more information see Carry back trading losses. |
| Unused losses for the year |
This is calculated automatically from the information in these boxes and cannot be edited here. (Adjusted loss for the year minus Set off against other income minus Set off against capital gains minus To be carried back) |
| Unused losses b/f from earlier years |
This is calculated automatically from the information in these boxes and cannot be edited here. (Losses b/f from earlier years minus Used) |
| Total loss to carry forward |
This is calculated automatically from the information in these boxes and cannot be edited here. (Unused losses for the year plus Unused losses b/f from earlier years) |
This page is only available if you have indicated that the client is completing the full Partnership supplementary pages on the Taxable Profit page.
You must enter the relevant details on this page if the partnership received any untaxed investment income.
The basis period for any untaxed income is normally the same as that for your share of the partnership's trade or professional income.
| Option | Description |
|---|---|
| Income tax basis period from/to | The date on which the partnership's basis period starts and the date on which it ends. |
| Display | Select one type of income from the drop-down list. The expense types available are further divided e.g. NSB first option bonds is one of the Income from UK savings options that you can choose. The income type that you choose changes the options that are displayed in the Description column of the grid. The six types and their various options are as follows: |
| Income from UK Savings |
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| Income from foreign savings |
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| Other untaxed UK income |
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| Other untaxed foreign income |
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| Income from offshore funds |
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| Income from UK land and property |
If the client is claiming to offset a loss arising on a share of a partnership UK property loss against income and there are unrelieved losses and reliefs for the tax year due to the annual limit on income tax reliefs, introduced by Schedule 3 Finance Act 2013, these will be detailed on an appendix to the tax calculation. If the claim is restricted you can either:
or Note: You will need to enter claims to offset losses arising on a share of a partnership UK property loss against income on a copy tax return. |
| Income from UK or EEA furnished holiday lettings | Select an item from the upper grid and enter transaction details in the lower grid for the basis period (not the tax year). |
The following column types are related to the particular income option that you select. Different columns appear for different income options:
Description - This is the name of the income option. You can change this default name if you wish.
Allocated share - Enter the client's share of the partnership's income from which no UK tax has been deducted.
Allocated profit - Enter the client's share of the partnership's income from the investment source from which no UK tax has been deducted.
Allocated loss - Enter the client's share of the partnership's loss from the investment source.
Adjustment to profit - Enter the adjustment needed (if any) to arrive at the client's profit for the basis period.
Adjustment to loss - Enter the adjustment needed (if any) to arrive at the client's loss for the basis period.
Adjustment - Enter the adjustment needed (if any) to arrive at the client's income for the basis period.
Foreign tax - Enter the amount of foreign tax which has been deducted from the income for which the client is not claiming tax credit relief.
Loss B/F - Enter the amount of loss sustained in earlier tax years which the client has claimed to bring forward against later profits.
Loss C/F - Enter the amount of loss sustained in the current tax year which the client has claimed to carry forward against later profits.
Adjusted income - This is the calculated amount of the client's share of the partnership's income from the investment source after all relevant adjustments have been made.
Taxable profits - This is the calculated total taxable profit for that income type.
Ensure that data has been entered in all available columns for each relevant item of untaxed income. You may need to use the scroll bar to see some of the columns.
Tax Group - This is the name of the selected item's designated Tax Group, which indicates where the amounts for the item will appear on the Tax Return.
| Option | Description |
|---|---|
| Total untaxed savings income liable at 20% | The sum of Income from UK savings and Income from foreign savings, from the Non-trading income tab. |
| Total untaxed income (other than savings income) |
The sum of the following income types, from the Non-trading income tab:
|
| Overlap profit brought forward | If your partnership started business on or after 06/04/1994 and the partnership's annual accounting date is a date other than 5 April, it may be that your basis period for the currently selected tax year overlaps that of the previous tax year. These overlaps can occur in the first three years of the partnership's business or in a year in which there is a change in the partnership's annual accounting date. Enter the amount of overlap profit brought forward from a previous basis period/tax year in this box. |
| Used this year |
Overlap relief may be due if:
The relief is first given against the client's total untaxed income. Any excess can be set against their total income for the currently selected tax year. You may wish to refer to HMRC's notes on the Partnership (full) supplementary pages. |
| Carried forward | Enter the amount of overlap profit which the client wishes to carry forward to the next Basis period/ tax year. |
| Share of total untaxed income (other than savings income) |
Calculated as Total untaxed income (other than savings income) less Overlap profit Used this year. |
| Taxed Income |
Enter where indicated the client's share of dividend, savings and other taxed income, together with any foreign tax suffered which is to be treated as an expense. Note: Foreign tax claimed as Double Tax relief should be entered at Foreign > Tax credit relief for foreign tax paid. |
| Summary |
Analyses your client's partnership profits as:
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Tax paid and deductions
Enter here the following amounts:
- Share of Income Tax taken off partnership income
- Share of CIS deductions made by contractors
- Share of any other tax taken off trading income
Residential property finance costs
The following options are available for UK and Foreign property.
| Amount brought forward | Shows Amount to carry forward from the previous year. |
| Amount brought forward |
Shows Amount to carry forward from the previous year. |
| Amount for the year | Enter the amount of Residential finance costs arising in the year available to be used to calculate a reduction in income tax. |
| Total amount available for the year | Calculated as the sum of Amount brought forward and Amount for the year. |
| Amount used this year | Defaults to Total amount available for the year used this year. You can edit this amount if required. |
| Amount to carry forward | Calculated as Total amount available for the year less Amount used this year. |
The Property finance costs appendix to the Tax calculation will show whether the Amount used this year is restricted. You can choose to edit the amounts for this year or amend the Amount brought forward in the following tax year.
How do I get here?
Earned income > Partnerships