Partnership Law
Formation, authority, duties, liability, property, profit sharing, retirement and dissolution of partnerships.
How to study the ATT Qualification
Use Finance Act 2025 for the 2026 tax papers, complete the three foundational CBEs early, apply professional ethics throughout and concentrate option practice on the one paper you will enter.
Core concepts
Concept 1
A partnership can arise from carrying on business in common with a view of profit.
Exam cue: Test whether a partnership exists in substance.
Concept 2
Partners may bind the firm and owe duties to each other.
Exam cue: Identify partner authority and third-party knowledge.
Concept 3
Admission, retirement and dissolution affect authority, liability and property.
Exam cue: Separate internal allocation from external liability.
Risk pitfalls and guardrails
Assuming a written agreement is always required.
Guardrail: Do not use an obsolete tax rate, assume a relief, ignore legal form, submit unsupported information or omit the relevant deadline and ethical response.
Treating profit share as a limit on third-party liability.
Guardrail: Do not use an obsolete tax rate, assume a relief, ignore legal form, submit unsupported information or omit the relevant deadline and ethical response.
Ignoring notice when a partner retires.
Guardrail: Do not use an obsolete tax rate, assume a relief, ignore legal form, submit unsupported information or omit the relevant deadline and ethical response.
Memory anchors
Partnership
Business in common with a view of profit can create a partnership.
Partner agent
Each partner may act as agent of the firm within authority.
Duty
Partners owe duties of good faith and accounting to the firm.
Liability
External liability is distinct from internal sharing.
Dissolution
Address authority, creditors, assets and final accounts.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
Two people carry on a business in common with a view to profit without signing an agreement. What may arise?
A partnership agreement is silent on profit shares. Under the ordinary statutory default, how are profits shared?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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