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Post Info TOPIC: Tax on Partnership profit
fabs79


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Tax on Partnership profit
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A question for the Partnership experts.

I have always thought that the partnership tax return (SA800) was only including the details of the partnership's affairs (income, expenses, etc) and how the profit (before tax) was split between the partners. Each partner would then include his/her share of the partnership's profit (before tax) in his/her own SA (partnership pages SA104) and pay tax on it as part of the overall SA.

However I recently stumbled upon this page on the HMRC website.

http://www.hmrc.gov.uk/sa/complete-parts-partners.htm

The section labeled "Completing the Partnership Return (SA800)" seems to imply that the partnership pays tax on its profit directly (see step four on the page). This is the part that got me confused.

Can anyone briefly clarify the process as I'm really interested in getting to the bottom of how partnership taxation works. I'll be doing SA for individuals and not for partnerships, but the process would affect the individuals' SAs too.

Thank you.

Fabs



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Don Tax


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You've already got it right Fabs. The HMRC paragraph is just very badly worded.

Tim



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