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Coming full circle on partnership expenses

Graeme Blair takes us on a six-month journey through the changes to HMRC’s guidance on partnership expenses.

Over the years there have been numerous cases considering the deductibility of expenses for the self-employed, including deductibility by partners in partnerships.

As a generality those cases have looked at capital verses revenue, hobbies verses trades, personal expenses verses trading costs and the meaning of wholly and exclusively. To my knowledge none of the cases looked at the mechanism for a partner to claim tax relief on costs associated with their trade.