Partnership Law

Partnership Law in England and Wales is founded on the Partnership Act 1890, and the Limited Partnerships Act 2001.

The first is highly prescriptive and automatically imposes a detailed relationship on persons doing business together for profit, often unaware they have such duties. Such partnerships do not have limited liability.

The Limited Partnerships Act 2001 created registered companies with limited liability, but called partnerships.

The Act by itself leaves serious gaps in the rules governing the parties’ relationships – a members’ agreement is needed to fill these gaps.

The members of conventional or limited liability partnerships are treated as individuals separately for taxation purposes.

Partners need to understand the detailed implications of doing business though these entities.

We have extensive experience of advising on partnerships of both types. We regularly advise on partnership agreements and sales as well as the arrival and retirement of partners.