This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Business and partnerships

By Lee Sharpe, February 2021

Lee Sharpe looks at some pitfalls of carrying on a business in partnership. 

In this article, I’ll be looking at some of the consequences of taking on partnership status. There are different categories of partner and partnership, and the following serves only as a basic introduction. 

You can become a partner by accident! 

The Partnership Act 1890 defines a partnership as ‘the relation which subsists between persons carrying on a business in common with a view of profit’. There are exceptions to this, but there is no need for a formal arrangement, to give notice or to ask permission.  

There may be various reasons why two or more persons acting together may not quite make a partnership, but it is nevertheless relatively easy to achieve – even if you didn’t intend to. Note that agreements setting out to deny

This is one of our 1989 Premium articles

To see this article in full and unlock access to our complete library of 1989 articles click 'subscribe & unlock' below:

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you for signing up to hear from us!