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This guidance note explains how other income received by a partner from a partnership is taxed. The Other partnership income guidance note details what income is included as ‘other income’.

For the taxation of trading profits, see the Taxation of partnership trading profits guidance note. For foreign income, see the Partnership foreign income and tax paid guidance note.

A partnership’s untaxed income is dealt with as follows:

1. •

   the income receivable for the partnership period of account is identified and any allowable expenses are deducted (eg repairs will be deductible against rental income)

2. •

   the net amount is then divided between the partners in the profit-sharing ratio which applies to trading income for that period of account

The allocation to a tax year for individual partners then depends on the relevant tax year as set out below.

For corporate partners other income is included in the company’s self assessment return. Where the period for which the partnership makes up accounts does not coincide with the company’s accounting period, the amounts are apportioned