HMRC published a new draft Partnership Manual on 29 April 2014 following the recommendations of the Office of Tax Simplification for a consolidated version of the guidance on partnerships. The purpose of this manual is to make the guidance more easily accessible.

The manual provides a general overview on partnerships and amalgamates HMRC's guidance on tax applicable to partnerships and limited liability partnerships. The manual is stated as being designed to provide:

  • a basic understanding of partnerships and how they are taxed in the UK;
  • information about how the Self-Assessment regime applies to partnerships, including registration and filing requirements, as well as compliance procedures;
  • an overview of how the partnership profits are determined, including more detailed advice on commonly occurring issues;
  • guidance on some of the more complex issues affecting partnerships, such as special rules that may apply to certain types of partnerships or to those with mixed membership or international aspects; and
  • details of where you can find further guidance.

The guidance highlights key pieces of information to be aware of and makes it clear that other guidance produced by HMRC on partnerships will not be replicated in the manual but the manual will signpost where that guidance can be found. For those with a detailed understanding of partnerships and the taxation rules the guide may not be relevant, however, it provides a good overview that small partnerships (and others) may well find useful.

Comments on the draft manual can be sent to