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Partnership vs joint venture

In the past week I have come across some advice given in another place namely that two individuals should treat their arrangement as a joint venture and not a partnership? What is the difference between these two structures and more importantly, what tax advantage does a joint venture present over a partnership? Personally, I can not see any difference between them.
Chris dxuk


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joint venture or parthership
Am i right in saying that a joint venture is not a vehicle or legal entity in itself - it refers just to an arrangment to share revenues, costs, profits or losses. If the joint venture is going to open a bank account then either a partnership has to come into existence or one of the joint venture participants (whether sole trader or limited company) will have to open a bank account in its own name.

Can 2 limited companies (one UK one US) form a conventional partnership or LLP with no other partners (either corporate or individual)?

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Jim has put his finger on it in his last sentence
buy to let would not be trading, but a high turnover of properties in the future may lean towards property trading

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JV - I think not
Income from jointly owned property for spouses/civil pafrtners is taxed 50:50 unless there is an election to treat the income as being due in relation to the underlying ownership of the asset. I don't see what is achieved by setting up as a jv.

Incidentally, partnerships only exist for trading purposes as far is tax is concerned.

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have a think about
overlap relief etc if any

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Dear David thanks for your comments. I too think if, the timeframe is relatively short -term ie less than a year or the length of a one off project then JV would appear appropriate anything suggesting a continuing relationship would fall into the realm of the Partnership. Its just the article i was referring to was with regards to a husband and wife sharing the income received from a buy-to-let property and the answer suggested a JV structure. Clearly a husband and wife is a Long term commitment ( ok I know divorce and seperation happen) and a buy-to-let property is often a mortgage backed venture and hence, a long term commitment, its just that i feared there was some new wonder tax loophole that i had overlooked...

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I am no authority on the subject but..

If, for example, you have 2 sole-traders and they are not continuing in business jointly with a view to profit i.e. they legitimately have their own businesses.

If they decide to work on a 'project' together and split any profits then this can be dealt with as a JV.

They therefore split the joint income and expenses and add it to their existing accounts rather than form a partnership and complete a partnership return etc.

Some JVs are on dicey ground as to whether they are really a partnership, particularly those with longevity. Many are just short-term projects.

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